Worker Confidence Falls

New York, May 2, 2007–Worker confidence edged lower in April, as the Hudson Employment IndexSM fell 1.5 points to 107.5. Despite the decline, the April figure is among the highest from the past year. Financial concerns and lower levels of job satisfaction triggered the drop. The latest reading is essentially level with April 2006, when the Index registered 107.7.

Hudson, a leading provider of permanent recruitment, contract professionals and talent management services worldwide, publishes the Hudson Employment Index, a monthly measure of U.S. worker confidence in the employment market. 

Financial Concerns Up, Job Satisfaction Down

Specifically, the number of workers who said their financial situation was improving fell two points to 42 percent in April, and the number who said it was getting worse rose a point to 38 percent. There was also a one-point uptick to 16 percent of employees who described their finances as “poor.” Another factor that contributed to April’s Index drop was a two-point decline among workers who were happy with their job to 73 percent.

“After appearing unaffected by rising energy prices for the past couple of months, U.S. workers are beginning to reveal the toll that paying $3.00 for a gallon of gas has taken on their wallets,” said Robert Morgan, president, Hudson Talent Management.  “On the other hand, job growth and low unemployment persist and continue to sustain worker sentiment.”

April 2007 vs. April 2006 – Looks Can Be Deceiving

Despite the nearly identical readings in April 2006 and 2007, there are quite a few differences in the factors contributing to the Hudson Employment Index year-over-year. In particular, significantly fewer workers forecasted layoffs and were concerned about job security this April than one year prior. Conversely, there were greater expectations around hiring last April compared to this year. Those specific data points can be found in the accompanying chart.