Concerns About the “Great Recession” Persist

By US Daily Review Staff.

Randstad’s latest Employee Confidence Index was 51.1 in June, recording its third consecutive decline in overall confidence levels among U.S. workers. Macroeconomic concerns contributed to the continued retreat in overall optimism, as workers apprehensions about the strength of the economy and job availability increased. While the overall June Index dipped by 2.1 points, it still remains three points higher than this time last year.

Yet, despite greater economic insecurities, employee perspectives on the availability of jobs and the future of their current employers remain largely unchanged or slightly higher than in January. Most notably, employee confidence in the ability to find a new job is up four points over the January number. In both May and June, 41 percent of respondents expressed confidence in being able to find new employment.

“These first six months of the year have certainly been different than what analysts and economists expected, with less job creation posted in the second quarter,” said Joanie Ruge, SVP & chief employment analyst for Randstad Holding. “While the economy has unquestionably added jobs at a very modest pace, it is certainly interesting to see that workers remain confident about the stability of their current jobs, employers and ability to find employment.

“It is clear, however, that the economy and job market are continuing to weigh heavily on the minds of U.S. workers. This sentiment will also likely remain for employers as they look towards the second half of what has proven to be a year of caution. In fact, many expect this mindset to remain as we head closer to the November U.S. presidential election. That said, we continue to see demand in industries like information technology and engineering, as unemployment rates remain low and the demand for skilled workers high. With the more than eight million jobs lost since the start of the financial crisis, roughly 3.8 million have been added back. Job creation will continue to be a top priority as we reach the final few quarters of 2012.”

The online survey was conducted by Harris Interactive on behalf of Randstad. It surveyed 1,253 employed U.S. adults, aged 18 and over between June 11-13, 2012.

Look Inside the Report:

Employee Confidence Index Down, Still Above Positive Confidence Threshold of 50

  • The Employee Confidence Index was down for the third month in June, registering at 51.1, ending the quarter on a downward trend
  • June overall confidence level remains three points higher than June 2011, and 0.5-points lower than June 2010

Overall Employees Unsure About Economy, Job Creation

  • In June, just less than a quarter (24 percent) of employees indicate the economy is getting stronger; down from a year high in March of 32 percent
  • During the first six months of the year, half of workers on average (49 percent) believed fewer jobs were available. Less than one in five (19 percent) believed more jobs were available

Personal Confidence High, Consistent

  • A majority of workers (61 percent, averaged) over the last six months, indicated that they are confident in the future of their companies
  • Worker confidence in ability to find a new job reached a six-month high in April of 46 percent; In June this number was down five points to 41 percent

U.S. Workers Remain Secure in Their Positions

  • Employee confidence in the security of their jobs has remained above 70 percent over the last four months. Job security registered at 71 percent in June 2012
All opinions expressed on USDR are those of the author and not necessarily those of US Daily Review.

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