U.S. Worker Confidence Index™ Declines 3.7 Points in Final Quarter of 2024

Perceived Likelihood of Promotion Records Modest Gain 
While Remainder of Indices Drop, Denting Overall Confidence

PHILADELPHIA, Pa. - March 07, 2024 – Although the U.S. labor market strengthened throughout 2024, American workers appear quite cautious about their employment outlook as the U.S. Worker Confidence Index™ (WCI) dropped 3.7 points from 111.4 to 107.7 in Q4 2024. Despite increasing in the prior quarter, the WCI currently remains 7.2 points below its all-time high of 114.9 registered in Q4 2023. 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.

All indices comprising the WCI, with the exception of perceived likelihood of a promotion, declined to close the year. Perceived likelihood of a raise decreased the most, falling 7 points from 118.4 to 111.4. Trust in company leadership fell 5.9 points from 106.6 to 100.7, its lowest point since Q2 2022. Perceived job security dropped 3.8 points from 97.4 to 93.6, continuing its prior-quarter decline.

While perceived likelihood of a promotion was the only index to notch a gain, increasing 2 points from 123.2 to 125.2, it still remains down 6.7 points year-over-year.

“By all indications, the talent market outperformed expectations in 2024. Yet once again, we’re seeing a mismatch between the strength of hiring efforts and the concern workers have for their individual careers,” said John Comito, President of Yoh. “As the latest WCI makes clear, American workers are less than certain about their employment prospects heading into 2025. This should serve as a wake-up call to employers as they plan for the year ahead. To protect against a downturn in morale, it’s imperative that employers take steps to promote the engagement and satisfaction of their teams, especially by remaining open to their needs, concerns and suggestions. Talent strategies that prioritize this kind of two-way communication with new and established employees alike are key to long-term success.”

Other key takeaways from the Q4 2024 Worker Confidence Index™ include:

• Confidence among women fell much more significantly than men.
  

  While the WCI dropped 0.5 points (from 111.9 to 111.4) among men, it dropped 7.9 points (from 110.7 to 102.8) among women. Likewise, job insecurity heightened more substantially among women. Among men, the fear of job loss increased 2 percentage points to 15.9%, while among women, the fear of job loss increased 3.4 percentage points to 11.7%.

• Contrary to white and Hispanic workers, overall confidence among African American workers increased.
  

  African American workers continued to report the highest level of overall confidence at 146.8, while white workers continued to report the lowest level of overall confidence at 95.6. With respect to perceived likelihood of a promotion, confidence among African American workers increased 7.3 percentage points to 42.5%. Confidence among white workers decreased 0.3 percentage points to 18.9%; similarly, confidence among Hispanic workers decreased 2.4 percentage points to 32%.

• High earners continued to feel the most confident in a raise, although confidence diminished across all income segments.

Among workers making $75,000-$100,000, confidence in a raise dipped 0.3 percentage points to 38.6%, while among workers making $100,000+, confidence dipped 2.4 percentage points to 37.8%. Alternatively, workers making $35,000-$50,000 reported the greatest dip in confidence, dropping 3.3 percentage points to 26.6%. Among workers making $50,000-$75,000, confidence dipped 3.3 percentage points to 26.6%, while among workers making less than $35,000, confidence dipped 1.6 percentage points to 22.7%.

• Older workers maintained low levels of trust in company leadership relative to younger workers.

Workers aged 18-24 reported the highest level of trust, 58.7%, a quarter-over-quarter increase of 1.8 percentage points and the greatest among age segments. Workers aged 45-54 reported a quarter-over-quarter decrease of 6.4 percentage points, the greatest among age segments, to 45.8%. Workers aged 65+ maintained the lowest trust in company leadership, decreasing 2.9 percentage points to 21.2%. Among workers aged 25-34, confidence decreased 3 percentage points to 55.4%, while among workers aged 55-64, confidence decreased 3.9 percentage points to 34.5%. By contrast, confidence among workers aged 35-44 increased 0.4 percentage points to 56.8%.

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