State of the Workplace: A Message to America’s Leaders

In advance of President Trump’s State of the Union address on Feb. 24, SHRM President and CEO Johnny C. Taylor, Jr., SHRM-SCP, and Emily M. Dickens, SHRM’s Chief Administrative Officer, released the 2026 State of the Workplace: A Message to America’s Leaders — a national call to action grounded in new workplace data and the real-world experiences of employers and HR professionals across the country.

This year’s message reflects a defining moment for America’s workplaces. The economy continues to evolve rapidly, driven by technological change, shifting employee expectations, and sustained talent shortages. The workplace remains resilient. But it is under real strain.

Workplace Policy Themes from the State of the Union

In his Feb. 24 State of the Union address, the President outlined a series of workforce and workplace policy priorities expected to influence the administration’s legislative and regulatory agenda in the months ahead. The remarks addressed job growth, tax policy, healthcare reform, retirement security, artificial intelligence education, and federal approaches to diversity, equity, and inclusion programs.

Economic Growth and Workforce Participation

The President emphasized continued job creation and pointed to private sector growth as a key indicator of economic performance. Additionally, the President referenced the “One Big Beautiful Bill,” highlighting several workforce related tax provisions. These include the elimination of federal income taxes on tips, overtime pay, and Social Security benefits, as well as an expansion of the Child Tax Credit to $5,000 per child. He also pointed to the establishment of “Trump Accounts” for every American child, with millions of accounts prefunded by the Treasury Department to support long term savings and financial security. Collectively, these measures underscore an emphasis on tax relief and asset building as mechanisms to support working families and encourage sustained workforce participation.

Federal Policy and Employer Compliance

On diversity, equity, and inclusion (DEI), the President stated that the administration is taking steps to dismantle DEI initiatives nationwide. The remarks continue to signal a federal policy shift that may affect agency guidance, enforcement priorities, and federal contracting requirements. Employers should monitor any further developments closely for potential compliance implications.

Healthcare and Retirement Security

On healthcare, the President proposed a “Great Healthcare Plan” that would redirect payments from large insurance companies directly to individuals to purchase coverage at lower cost. The plan emphasizes price transparency and consumer choice. He also highlighted efforts to reduce prescription drug prices through the TrumpRx initiative and urged Congress to codify these reforms.

On retirement policy, the President reaffirmed a commitment to protecting Social Security and Medicare. He also referenced growth in 401(k) accounts and discussed modernization efforts related to retirement plans, including reforms affecting federal workers.

Artificial Intelligence and the Future Workforce

The President underscored artificial intelligence as a priority. He highlighted the Presidential Artificial Intelligence Challenge and the White House Pledge to Invest in AI Education, both aimed at expanding AI learning opportunities and strengthening the future workforce pipeline.

As federal policy discussions continue, employers and HR leaders will play a central role in translating these priorities into practical workplace strategies that support growth, compliance, and long-term workforce resilience.