71% of U.S. employers impacted by DEI policy changes, 65% by immigration shifts: Survey

According to the survey, diversity, equity and inclusion (DEI) and immigration policy changes have had the most significant impact on employers during the administration’s first year. Around 71% of respondents said changes affecting DEI initiatives influenced their organisations, while 65% pointed to immigration policy changes.

Among large employers with more than 10,000 employees, the impact was even more pronounced, with 86% citing DEI-related changes and 79% noting immigration policy effects.

Immigration policies have also translated into workforce challenges. Nearly two-thirds of respondents (63%) reported staffing difficulties linked to the administration’s immigration policies, rising to 75% among large organisations. The figure surpasses concerns recorded in the firm’s 2025 Employer Survey, when 58% had anticipated potential workforce disruptions.

Economic and regulatory uncertainty has also affected hiring and workforce planning. Thirty-five percent of surveyed employers said their organisations implemented workforce reductions over the past year due to shifting regulations and economic pressures. Another 30% indicated that hiring had been paused or scaled back amid the uncertain policy environment.

The report suggests that employers are increasingly taking a cautious approach to workforce expansion while assessing the longer-term implications of federal policy changes.

Beyond federal policy shifts, businesses are also contending with a growing number of state and local workplace regulations. Nearly 89% of employers said they were affected by legislative changes at these levels in the past year.

Most of these developments relate to areas such as paid leave, pay equity and pay transparency, as well as data privacy requirements. As federal regulatory activity slowed in certain areas, state and local legislatures have moved to introduce their own workplace rules, creating a patchwork of laws that companies must navigate.

Key federal agencies to watch in 2026

While employers reported relatively limited impact from federal agency actions during the past year, partly due to some bodies operating without a quorum, activity is expected to increase in 2026.

The Equal Employment Opportunity Commission is likely to become more active now that it has regained a quorum. Potential developments could include renewed attention to the Pregnant Workers Fairness Act, expanded litigation authority and evolving discussions around LGBTQ+ protections and religious rights in the workplace.

Meanwhile, the National Labor Relations Board may resume rulemaking initiatives, potentially addressing issues such as worker classification, representation procedures and campaign speech in union contexts.

The U.S. Department of Labor is also expected to pursue rulemaking on worker classification, joint employment standards and minimum wages for federal contractors, areas employers are closely monitoring for future changes.

As businesses prepare for the second year of the administration, the survey underscores a common theme: employers are navigating a rapidly shifting policy landscape that continues to reshape workplace strategies, compliance frameworks and hiring decisions.