Workers' confidence in employers' outlook hits new low

(Bloomberg) –U.S. workers are more downbeat about the prospects for their employers than at any time in nearly a decade, but some may have to grin and bear it as layoffs mount and their job options ebb.

The share of workers who said they had a positive six-month outlook for their organization fell to 45.6% in January, according to employer-review site Glassdoor. That’s down nearly 2 percentage points from the prior month and the lowest reading since tracking began in 2016.

A similar index from the ADP Research Institute, which tracks workers’ sentiment about their jobs and employers, began the year with its first decline in five months.

“Employee confidence is starting the year on shaky footing,” said Daniel Zhao, Glassdoor’s lead economist. “As hiring rates continue to decline, mid-level employees continue to feel pressure meeting employer demands with smaller budgets and staffing.”

A few things have workers spooked. Layoffs continue to mount across multiple sectors, with Microsoft Corp., Citigroup Inc., Levi Strauss & Co., Salesforce Inc. and Macy’s Inc. among big firms announcing job cuts so far this month.

Job postings are down 15% over the past year, according to job site Indeed, plummeting 31% in finance and 44% in software development roles.

Wage growth has also slowed, and annual bonuses will be smaller this year. Employers continue to push staff back to offices more often, with a few threatening punitive measures, despite new research showing S&P 500 firms performed no better financially after imposing RTO mandates.

All that has contributed to a decline in the so-called quits rate — which stands at its lowest level in over three years — implying that Americans are feeling less confident in their ability to find other jobs in the current market or to get new jobs that are better paid.

Broader Economy

The data from Glassdoor and ADP only reflect how workers feel about their own employers, though. Some outward-looking measures of job sentiment have been improving in recent months, illustrating the discrepancy between workers’ individual views and the state of the broader economy in the US, where growth last quarter trounced estimates.

According to the Conference Board, the difference between consumers who say jobs are plentiful versus hard to get — a metric watched by economists to gauge labor-market strength — jumped in December by the most since early 2022.

The latest figures from that survey, as well as job openings, are due Tuesday, while the government’s January employment report comes out on Friday. The labor market has proven resilient, with historically low unemployment.

Still, workers remain on edge. The share of Glassdoor employee reviews talking about layoffs rose this month and is up 27% compared with the same point last year.

“Job security fears remain top of mind,” Glassdoor’s Zhao said.

Read more: 

• 2024 employee benefits & workplace predictions: RTO policies
• Global hiring trends are on the rise, despite return-to-office mandates
• Wages grew faster during the pandemic for low-end earners in low-income cities

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