What’s Keeping Employers Up At Night?

 

Ever wonder what’s keeping employers up at night? We were, and in July 2025, CEA conducted a statewide Employer Pulse Survey that drew responses from 253 organizations across a wide range of industries and sizes. Employers were given a list of topics to choose from (and the option to write in their own) to tell us about their top concerns in planning for the future.

The majority of businesses that responded (50%) were small to mid-sized employers with 20-99 employees, while 31% who participated had fewer than 20 employees. Larger employers were also represented, with 20% employing 100-499 workers, and 9% reporting a headcount of 500 or more employees. 76% of the organizations indicated that they operate exclusively in California, while 24% reported having business locations in other states as well.

Top Concerns Impacting Future Planning

Respondents were asked to identify their most pressing concerns when planning for the future. The top four concerns were:

1. Economic Instability – 68%
   Employers are highly concerned about ongoing economic uncertainty and its impact on business planning, revenue, and workforce stability.
2. Regulatory Complexity & Compliance – 55%
   California’s evolving and complex labor laws continue to pose challenges for businesses trying to stay compliant.
3. Skills-Based Hiring & Talent Shortages – 49%
   The difficulty in finding skilled candidates remains a major barrier to growth and operational efficiency.
4. Demographic Shifts – 20%
   Employers are beginning to feel the impact of generational shifts and an aging workforce on productivity, engagement, and retention.

Wage Order Representation

Survey participants represented a wide range of industries across California, reflected by their IWC Wage Order classification.  Five wage orders made up 76% of the respondents:

• Wage Order 4 – Professional, Technical, Clerical (White Collar): 48%
• Wage Order 1 – Manufacturing: 14%
• Wage Order 5 – Public Housekeeping: 6%
• Wage Order 9 – Transportation: 5%
• Wage Order 16 – Construction: 3%
• Other or Unspecified: 24%

Conclusion

The mid-2025 survey reflects the ongoing pressures that leaders of types and sizes of businesses face across the state of California.  Specifically, managing compliance laws, responding to economic conditions, and attracting the right talent are pain points for employers and leaders.

Resources

Whether it’s helping with onboarding your employees, finding top talent, or staying in compliance, CEA is here to help.  Please check out our toolkits and other resources online, or call us at 800-399-5331 for real-world HR advice.

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