Reports of positive economic indicators during the past several months have resonated with U.S. workers, whose confidence levels in the job market, economy and their personal employment situations all rebounded to multi-year highs. In June, the Randstad U.S. Employee Confidence Index rose 2.6 points to 58.1, the highest level on record since August of 2007 before the start of the recession. Meanwhile, the Randstad macroeconomic confidence index rose to 46.7, an increase of 2.1 points from 44.6 last month and its highest level in nearly a year.
The study, conducted online by Harris Poll on behalf of Randstad among 1,126 employed U.S. adults ages 18 and older, also shows workers’ confidence in their personal employment situation jumped in June, reaching 69.4 from 66.4 in May and its highest level since September 2008. Contributing to the uptick is workers’ improved outlook on their own job prospects and also their current employers’ future. Half of all workers feel confident in their ability to find a job, up from 47 percent last month, and more than six-in-10 (61 percent) are confident in the future of their current employer.
"We’ve seen many months of reserved and cautious optimism regarding the sustainability of an economic recovery, but our findings suggest workers now have sufficient evidence to feel the nation is on the right track," says Jim Link, Chief HR Officer, Randstad North America. "Uncertainty regarding employees’ job security levels is truly diminishing, with 75 percent of the U.S. workers indicating it’s unlikely they will lose their job in the next 12 months. Furthermore, less than 30 percent of the workforce now believes the economy is getting weaker—which is an improved statistic in the past several months."
In line with the Randstad Employee Confidence Index, findings from The Conference Board Consumer Confidence Index continue to improve. The Index now stands at 85.2, up from 82.2 last month, and marks its highest level since January 2008. June’s increase was driven primarily by improved current conditions and consumers’ assessment of business conditions. In fact, consumers stating jobs are ‘plentiful’ edged up to 14.7 percent from 14.2 percent in May, while those claiming jobs are ‘hard to get’ declined to 31.8 percent from 32.2 percent.
"The positive reports that moved the dial on employee confidence levels have also influenced U.S. employers to loosen the reins on budgets," says Link. "We see organizations taking a more aggressive approach to hiring as they move out of a recession mindset to one of growth and market expansion."
While the upturn in the economy is good news, it generates greater competition for talent. According to Link: "In our improved economy, workforce planning takes on greater importance to ensure the right talent is in the right position at the right time to help drive innovation and meet revenue goals."
Randstad, the second largest staffing and HR services firm in the world, has been tracking workforce trends and publishing the U.S. Employee Confidence Index since 2004.
Source: Randstad US
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