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U.S. Worker Confidence Index™ Reverses Three-Quarter Slump, Increases 4.1 Points in Q3 2024

Despite Dent in Perceived Job Security, Index Overcomes Prior-Quarter Decline and Rebounds to Q1 2024 Levels

GettyImages-1455074366PHILADELPHIA, Pa. - October 29, 2024 While much of 2024 has been filled with unease from American workers about their employment prospects, sentiment has finally taken a turn for the better. For the first time this year, the U.S. Worker Confidence Index™ (WCI) has notched a quarter-over-quarter improvement, increasing 4.1 points from 107.3 to 111.4. The data snaps a period of decline that kicked off following Q4 2023, when the WCI registered a peak measurement of 114.9. The WCI, a survey of U.S. workers commissioned by HRO Today magazine and Yoh, a leading international talent and outsourcing company owned by Day & Zimmermann, gauges full-time workers’ perceptions of four key aspects of worker confidence: perceived job security, perceived likelihood of a promotion, perceived likelihood of a raise and overall trust in company leadership.

In a departure from last quarter’s WCI, all indices comprising the WCI increased except for perceived job security. The index dropped 3.2 points from 100.6 to 97.4, with 11.1% of respondents fearing job loss in the coming year, up 0.6 percentage points compared to last quarter. 

By contrast, the remaining three indices experienced both quarter-over-quarter and year-over-year gains, offsetting the job-security dip. Perceived likelihood of a promotion grew the most, increasing 7.9 points from 115.3 to 123.2. Similarly, perceived likelihood of a raise increased 6.1 points from 112.3 to 118.4. Trust in company leadership increased 5.6 points from 101 to 106.6. 

“Following a lengthy dip in worker confidence, the turnaround measured in the latest WCI provides some much-needed optimism about the strength of the labor market. The fact that employees are once again viewing their work and the future of their careers in a positive light should be reassuring news to employers across industries,” said Emmett McGrath, President of Yoh. “At the same time, it’s imperative that organizations not become complacent and assume strong employee sentiment will continue. The best talent strategies must remain actively attuned to the needs of current employees and the expectations of prospective team members. Doing so ensures employers can maximize the goodwill of both existing and future employees and safeguard against any downward shifts in their employment outlook.” 

 

Other key takeaways from the Q3 2024 Worker Confidence Index™ include:

  • While overall confidence improved for both men and women, female respondents indicated a greater sense of job security than their male counterparts.

    This quarter, men reported a 4.4-point increase in overall confidence, while women reported a 3.6-point increase. Men are historically less confident in their job security compared to women, and this trend continued. Among men, the fear of job loss increased 2.7 percentage points to 13.9% of respondents, while it decreased among women by 1.4 percentage points to 8.3% of respondents. Meanwhile, the quarter-over-quarter gap between men and women in perceived likelihood of a raise increased by 2.2 percentage points, as 38.2% of male respondents and 26.8% of female respondents felt confident in this regard.

  • Breaking with historical trends, Hispanic respondents reported a slightly stronger perception of job security than white respondents.

    Typically, white workers report the greatest sense of job security; however, in Q3, 9.7% of white respondents feared job loss, while 9.6% of Hispanic respondents indicated the same. Hispanic respondents also reported the greatest increase in perceived likelihood of a raise, gaining 5.2 percentage points to 38.6% of respondents. African American respondents maintained the greatest confidence in a raise at 41.8% of respondents, while white respondents maintained the least confidence at 28.9% of respondents.

  • Trust in company leadership remains high among younger workers but is slipping.

Workers aged 25-34 were most trusting this quarter (58.5% of respondents), followed by workers aged 18-24 (56.9% of respondents). Interestingly, however, the confidence of this age bracket slipped the most, registering a quarter-over-quarter drop of 3.3 percentage points. Trust levels are historically highest among younger employees, with levels declining among employees aged 45+. By contrast, workers aged 45-54 increased trust the most in Q3, registering a 9.5-percentage-point bump. 

  • Worker confidence continues to be affected by employees’ work arrangement.

Remote workers reported the lowest overall confidence (103.9), driven by the least amount of perceived job security relative to hybrid and on-site workers. Hybrid workers reported the highest overall confidence (116.6), driven by the greatest belief in the likelihood of a promotion compared to remote and on-site workers. On-site employees reported the least trust in company leadership.

To view the entire study, visit https://www.yoh.com/hro-today-employee-well-being-study. 

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