FEATURE
WHAT CHANGES ARE YOU SEEING IN THE DEMAND FOR AMERICAN CUSTOMER CONTACT EMPLOYEES?
A: Over the past several years, we have seen a significant shift in the demand for them. The drivers behind these changes are both economic and technological.
I would say one of the most notable trends is the growing pressure on labor pools due to higher turnover.
Contact center roles have always experienced elevated churn, but recent years have intensified the issue. Wage competition, shifts in employee expectations, and the rise of remote opportunities have expanded workers’ options.
As a result, companies are competing more aggressively for talent, particularly in markets with already-tight labor conditions. This has reshaped where organizations can sustainably grow and which cities remain viable for long-term staffing strategies.
At the same time, AI-driven automation is changing the nature of the work rather than eliminating it outright. Routine inquiries and transactional tasks are increasingly handled by automated systems, but this has raised the bar for human agents.
Today’ s U. S.-based customer contact employees must manage more complex interactions that technology cannot replicate. This shift has increased the demand for stronger problem solvers. As a result, we are seeing companies adjust their hiring profiles and training programs to keep pace.
We are also noticing a measurable movement to reshore customer contact jobs back to the U. S. Several factors are driving this trend:
• Rising overseas labor costs.
• Quality / consistency issues.
• Geopolitical uncertainty and the need for tighter data security.
• But above all, customer experience( CX) has become a brand differentiator.
On balance, demand for customer service agents is projected to decline by 5 % over the next 10 years. WDGC believes this decline is underestimated by the Bureau of Labor Statistics( BLS). In our view, it might be closer by 10 %.
The trend began in 2024 as AI was becoming more widespread. In 2023, according to the BLS, there were 2,859,000 customer service representatives employed in the U. S. Today the number stands at 2,753,000.
While there will be a downward trend in total employment, demand for agents will nonetheless be fairly robust. In large measure this is due to the relatively high turnover which has long plagued the industry. Turnover in U. S. contact centers averages between 30 %- 45 % from our read of industry data. Consequently, the industry employers will need to fill over 750,000 replacement positions annually.
From a site selection perspective, the top-rated factor for successful call center location will embrace human resources. That is the supply, quality, cost, and stability of qualified talent( especially to perform more complex tasks).
" TODAY’ S U. S.-BASED CUSTOMER CONTACT EMPLOYEES MUST MAN- AGE MORE COMPLEX INTERACTIONS THAT TECHNOLOGY CANNOT REPLICATE. THIS SHIFT HAS INCREASED THE DEMAND FOR STRONGER PROBLEM SOLVERS."
LABOR SUPPLY
-- DENNIS DONOVAN
ARE THERE CHANGES IN THE SUPPLY OF LABOR TO FILL CUSTOMER CONTACT POSITIONS?
A: Yes, we are seeing discernible changes in the supply of labor available for them.
One of the most impactful trends is the continued decline in labor force participation, especially among women who have historically played a central role in the customer contact workforce.
The post-COVID-19 pandemic environment introduced lasting challenges( e. g., childcare), which have made it more difficult for many women to return to or remain in traditional shift-based roles. Even remote positions can have rigid schedules and complex tasks.
We are also seeing other demographic and lifestyle shifts that affect labor availability:
• Younger workers are entering the workforce with different expectations around flexibility, career pathing, and worklife balance.
• Contact center roles, which are often perceived as stressful and transitional, struggle to compete with remote jobs in other sectors offering similar wages with less emotional demand.
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