U.S. Worker Confidence Index™ Continues Downward Slide, Drops Four Points in Q2 2024

Despite Bump in Perceived Job Security, Americans’ Dismal Outlook on Perceived Job Advancement Drags Down Overall Index for Second-Consecutive Quarter

PHILADELPHIA, Pa. - August 8, 2024 – Following a bumpy start to 2024, worker morale remains on uncertain footing as the U.S. Worker Confidence Index™ (WCI) declined again in the second quarter of 2024. Although the WCI remains at above-average levels, overall worker confidence fell another 4 points, from 111.3 to 107.3, in Q2 2024. This is 7.6 points less than the WCI’s all-time high of 114.9 measured 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.

Only one index of the WCI, Perceived Job Security, notched gains in Q2 2024, recovering from three consecutive quarters of decline and increasing 4.7 points, from 95.9 to 100.6. Decreases in the other three indices, however, outweighed this growth. Likelihood of a Promotion fell the most, dropping 13.8 points from 129.1 to 115.3. Trust in Company Leadership fell 1.4 points, from 102.4 to 101, and, together with Likelihood of a Promotion, recorded the lowest reading in two years. Although Likelihood of a Raise dropped 5.6 points, from 117.9 to 112.3, the index remains higher than in Q2 2023.

For the first time, the WCI analyzed worker confidence by respondents’ work arrangement: remote, hybrid or on-site. In Q2 2024, remote workers reported the lowest job security, with 29.3% fearing job loss. By contrast, on-site workers reported the highest job security, with only 7.4% fearing job loss; however, these workers reported the lowest numbers for the remaining three indices. 

“While any dip in overall worker confidence can be cause for concern, the mixed results of this quarter’s WCI are not all bad news for employers. In fact, the turnaround in workers’ perceptions of their job security indicates some relative calm has come to the labor market,” said Emmett McGrath, President of Yoh. “Employers should capitalize on this neutral period as much as possible by taking steps to further strengthen their employees’ engagement and satisfaction. As the competition for talent continues, a focus on enhancing culture and camaraderie should remain an integral part of any HR strategy. This back-to-basics approach, accompanied by a robust hiring plan, can ensure leaders are making the most of this turning point in the talent landscape.”

Other key takeaways from the Q2 2024 Worker Confidence Index™ include:

• The worker confidence gap between men and women has been nearly eliminated.
  

  Although men historically express more confidence than women, significant drops among men in Q2 2024 narrowed the spread considerably. Confidence among men dropped 4.7 points, from 112.2 to 107.5, while confidence among women dropped 3 points, from 110.1 to 107.1. The losses among men were particularly pronounced among their perceived likelihood of a promotion. Both genders reported increases in perceived job security.

• Overall confidence among Hispanic workers is up despite traditional fears of job loss expressed by minority employees.
  

  Among Hispanic workers, worker confidence soared 11.9 points, from 110.4 to 122.3 By contrast, confidence among White workers dropped 5.9 points, from 105.5 to 99.6; likewise, confidence among African-American workers decreased 10.6 points, from 136 to 125.4. As is standard across quarters, minority employees noted less job security than White employees yet greater confidence in the remaining three indices that comprise the WCI.

• Perceptions of job security are up across all age groups, a contrast from Q1 2024.

In particular, workers aged 35-44 expressed the greatest boost in job security, as their fear of job loss decreased 6.1 percentage points, from 19% to 12.9%. Younger workers, despite increases in perceived job security, still expressed the greatest fear of job loss among all age groups. 16.6% of those aged 18-24 and 17.4% of those aged 25-34 indicated a fear of potential job loss. Older workers as a whole indicated the greatest degree of overall job security, as 9.4% of those aged 45-54, 7.9% of those aged 55-64 and 2.4% of those aged 65+ expressed a fear of potential job loss.

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