Unemployed Job Seekers Report Highest Confidence in Job Market Prospects in 3 Years, While Employed Remain Cautiously Optimistic As Concerns About Layoffs Taper, Employees Reveal Rising Uncertainty About Pay Increases In Next Year
SAUSALITO, Calif. – (July 6, 2012) – As the unemployment rate steadies near eight percent, reports of layoffs among employees¹ have declined. According to the Glassdoor® quarterly Employment Confidence Survey², of 2,208 U.S. adults aged 18+ conducted online on its behalf by Harris Interactive, fewer employees (38 percent) whose organizations have communicated negative changes reported layoffs or plans for layoffs in the past six months, a low since this survey began in Q4 2008.
In addition, employees concerned that coworkers could be laid off in the next six months fell four percentage points to 29 percent, whereas personal layoff concerns remained at 19 percent. While layoff concerns may be subsiding, employee optimism in pay raises dropped slightly since last quarter to 40 percent.
Interestingly, the gender gap is closing around expectations for a pay increase over the next 12 months. Men’s optimism has dropped five percentage points since last quarter to 40 percent, while women increased to 41 percent.
Unemployed job seekers are also reporting greater optimism this quarter about their prospects of finding a job. Nearly half (42 percent) of unemployed job seekers believe it is likely they will find a job in the next six months, up six points from the previous quarter and a high since Q1 2009. However, employees (full time, part time and/or self-employed) are less optimistic as 37 percent believe they could find a job, matched to their experience and compensation levels, in six months if they lost their current position.
“While the average number of new unemployment claims has modestly decreased as of late, which is one of several attributes that can lead to greater job seeker confidence, the question now is ‘Are Americans believing this summer’s unemployment line will be shorter?’” said Rusty Rueff, Glassdoor career and workplace expert, who ran global HR departments at Electronic Arts and PepsiCo before co-authoring Talent Force: A New Manifesto for the Human Side of Business. “Jobs and unemployment levels will continue to be among the primary concerns for Americans, and we can expect, as we near the November election, more questions from voters as to what it will take to reach a state of greater employment stability and confidence.”
Highlights from the latest quarterly Glassdoor Employment Confidence Survey are summarized below. The survey looks at four key indicators of employee confidence in the areas of pay raises, job market expectations, company outlook and job security.
Pay Raises: Closing the Gender Gap – 41% of Women and 40% of Men Expect Pay Increase
· Overall employee optimism in pay raises has decreased since last quarter. Forty percent expect a pay increase in the next six months, compared to 37 percent that do not expect a pay increase; a low since this survey began in Q4 2008. Twenty-three percent are unsure.
· The gender gap is closing around expectations for a pay increase over the next 12 months. Men’s optimism has dropped five percentage points since the last quarter to 40 percent, while women increased to 41 percent.
· Confidence among younger workers dropped 12 percentage points from last quarter. Thirty-seven percent of 18-34 year olds expect pay increases in the next 12 months whereas almost half (49 percent) expected raises in Q1 2012.
Job Market: Unemployed Job Seekers Increase Optimism in Job Search
· Unemployed job seekers continue to increase their optimism in their job hunt. Forty-two percent believe it is likely they will find a job in the next six months, which is up six points from last quarter.
· More than one third (37 percent) of employees (full time, part time and/or self-employed) believe they could find a job matched to their experience and compensation levels in six months if they lost their current position. Thirty percent believe it is unlikely they could find a job.
· Older workers are becoming less pessimistic about their job search. Forty-one percent of employees (full time, part time and/or self-employed) aged 55+ believe it is unlikely they would be able to find a job matched to their experience and compensation levels in the next six months, which is down six percentage points from last quarter.
Company Outlook: Employee Optimism Holds Steady
· Nearly half (45 percent) of employees, including those self-employed, believe their company outlook will be better in the next six months. Ten percent expect their company outlook to worsen, while 45 percent expect it to stay the same. This is essentially flat when compared to Q1 2012.
· The younger generation continues to be more optimistic about their company’s outlook than older generations. Of those 18-34 years old, 56 percent expect their company’s outlook to improve in the next six months, a six percentage point increase over the prior quarter. Approximately one-third (36 percent) of those 55+ believe their company’s outlook will improve.
Job Security: Concerns Over Coworker Layoffs Drop, While Personal Layoff Concerns Level Off
· Men (23 percent) are significantly more concerned about being laid off in the next six months when compared to women (15 percent).
· Concerns over coworker layoffs in the next six months dropped four percentage points this quarter to 29 percent, while personal layoff concerns remained unchanged at 19 percent.
· Coworker layoff concerns were highest among 18-34 year olds (35 percent), compared to 55+ (22 percent).
For more details and methodology of the survey, please see the full Q2 2012 Glassdoor Confidence Survey Supplement: http://www.glassdoor.com/press/surveys. Methodology
¹ For the purposes of this study “employees” were defined as U.S. adults 18+ employed full time and/or part time unless otherwise indicated.
² This survey was conducted online within the United States by Harris Interactive on behalf of Glassdoor between June 12 and 14, 2012 among 2,208 adults (aged 18 and over), of whom 1,338 are employed full time, part time and/or are self-employed, 1,186 are employed full time and/or part time and 205 are unemployed but looking. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For a full methodology including weighting variables please contact pr [at] glassdoor.com.