# The Great Decoupling: Workers and Companies Drift Apart AI accelerates the erosion of trust and long-term employment relationships - **Source:** [Josh Bersin](https://joshbersin.com) - **Published:** 2026-08-27 - **Topic:** [Leadership](https://brifing.si/c/leadership) - **Original article:** - **On Brifing:** https://brifing.si/s/ebecb87a-3b72-47f0-a066-29e87f4a2856 ## Declining trust in employers Trust between workers and employers has steadily declined over 30 years, with only 67% of employees trusting their employers in 2024. Frontline workers show even lower trust levels at less than 50%. Leadership trust is particularly low at 19%, down from 25% in 2019. The pandemic briefly reversed this trend, but discussions about AI-driven layoffs have caused trust to plummet again. ## The rise of side hustles Over 65% of workers now have side hustles, reflecting the decoupling from traditional employment. The average US worker will experience 2.5 layoffs in their career, more than double the rate from three decades ago. This shift represents a fundamental change in the employment relationship, with both workers and employers showing less long-term commitment to each other. ## Historical policy shifts The decoupling trend began with policy changes favoring an 'ownership economy' where workers bear more responsibility for retirement (401ks), healthcare (HSAs), and career development. NAFTA and globalization outsourced stable jobs, while legislative support for labor unions and collective bargaining steadily declined. These changes systematically reduced employer obligations to workers. ## Corporate lifespan shortening Companies now average 4-5 years on the S&P 500 compared to 12-13 years in the 1970s-80s, reflecting increased volatility. This shorter corporate lifespan makes long-term employment relationships less feasible. Technology and global competition threaten all companies, creating an environment where continuous workforce restructuring becomes the norm rather than exception. ## Wage stagnation realities The federal minimum wage has remained at $7.25 for 17 years, losing 49% of purchasing power. While most workers earn above minimum wage, this stagnation reflects broader wage trends. Since the 1970s, no worker segment has kept pace with inflation. College degrees stopped paying off about 20 years ago, and even advanced degree holders are now slipping behind. ## Financial insecurity grows Over half of US workers lack more than 3 weeks of savings, creating financial precarity. Gig economy jobs that once felt liberating now represent survival tactics as companies dominate markets and push down labor costs. Economic sentiment has hit a 60-year low, exacerbated by high gas prices and inflation, leaving workers feeling like replaceable labor. ## Market rewards layoffs Stock prices now typically rise when companies announce layoffs, reflecting Wall Street's view of labor as a cost rather than investment. This accounting approach dates to agricultural economies but persists despite knowledge economy realities. The financial system thus incentivizes workforce reductions rather than long-term human capital development. ## Education system failures 45-55% of US adults lack 12th-grade reading proficiency needed for workplace documents and AI collaboration. The education system has deteriorated over 60 years, failing to provide critical thinking skills. Broad education initiatives could help, but current policies emphasize technical skills over the 'power skills' becoming more valuable with AI. ## Poor workforce planning Companies simultaneously lay off workers while hiring aggressively, reflecting poor labor force optimization. This approach destroys institutional knowledge and culture while creating long-term distrust. Many executives operate as if skills are always available, treating employees as disposable despite the actual costs of turnover and retraining. ## Alternative approaches exist Some companies like Nvidia, Microsoft, and Chevron maintain long-term human capital strategies, avoiding layoffs and overhiring. They view employees as appreciating assets rather than costs. These firms demonstrate that decoupling isn't inevitable, though it requires resisting short-term market pressures and valuing workforce stability. ## Leadership opportunity in AI era The AI transition presents a chance to reinvent workforce strategies. Forward-thinking leaders will invest in existing employees' development rather than viewing them as replaceable. In an economy where human creativity remains irreplaceable, companies that nurture talent will gain competitive advantage despite prevailing decoupling trends. ## Sources covering this story - https://joshbersin.com/2026/08/the-great-decoupling-how-workers-became-disconnected-from-companies-and-ai-will-accelerate-this-trend/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._