Wednesday, July 4, 2007

Survey of Workers Shows a Decline in Confidence

The article is interesting because it shows a drop in confidence in workers’ views towards an expanding job market, their ability to keep their jobs, and also their own personal finances. From an historical standpoint, worker confidence can be a leading indicator of an economic downturn. This and other worker attributes may be worth watching for the next quarter or two. From Market Watch:

U.S. workers' confidence weakened in June to the lowest level in nine months, according to a monthly survey by a top recruiting company released Tuesday.

The Hudson employment index fell to 101.2 from a May reading of 106.9, said Hudson Highland Group Inc. citing reduced expectations for hiring combined with heightened financial worries. The June 2006 index was at 102.4.

"It appears worker sentiment caved under the pressure of the weak housing market, high energy prices, and inconsistent job growth," said Robert Morgan, president of Hudson Talent Solutions, in a statement.

The percentage of workers surveyed who said their company is hiring fell to 30% from 32%, while 19% of workers said they were worried about their own job security.

Workers were more pessimistic about their own finances, with 43% rating their financial condition favorably, compared with 45% the previous month.

Meanwhile, 41% of workers said their finances are getting worse. It's the first time since last August that more workers were pessimistic than optimistic.

Confidence among workers making more than $75,000 declined, Hudson's June survey showed. Worker sentiment fell dramatically in Chicago, which has had the highest gasoline prices in the nation.

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