NEW YORK, N.Y. – For the second consecutive month, U.S. worker confidence fell to an historic low, as the Hudson Employment Index declined 1.4 points to 96.8. The aftermath of Hurricanes Katrina and Rita contributed to a steep decline in workers' optimism about their personal finances, which were previously impacted by high energy prices. Additionally, hiring plans stalled slightly. This month's Index is 10 points lower than one year ago as well as the start of 2005.
While there was virtually no change in how workers rated their finances this month, 47 percent indicated their financial situation is getting worse. This is the highest figure on record and seven points higher than the 2005 yearly average of 40 percent. Just 36 percent of the workforce claimed that their finances were improving in September, compared to this year's average of 41 percent.
Hiring expectations also suffered another slight setback as only 29 percent of employees reported their firms expected to hire in the coming months. After holding steady at about 31 percent for nine successive months, this was the second month in a row where hiring outlook dropped by one point. The percent of workers anticipating layoffs remained at 17 percent.
"As we might have expected, Hurricanes Katrina and Rita exacerbated an already dampened personal financial outlook," said Jeff Anderson, senior vice president, Hudson, North America. "Even as we anticipate hiring to rebound in the coming months, financial concerns have a real potential to undermine workers' overall confidence in the employment market."
Confidence fell in nearly every state were data is available, most dramatically in Pennsylvania, California and Texas. For example, Texas employees statewide reported weakened confidence in their personal finances, less anticipated hiring activity, more expected layoffs and lower levels of job satisfaction.
Despite the overall Index decline, some positive news can be pulled from the data. Workers nationwide were happier with their jobs in September, with three-quarters (75 percent) of the workforce reporting satisfaction, up from 72 percent in August. Confidence was also up among workers in the IT and accounting & finance sectors, as well as among African-American workers. In contrast, confidence fell significantly among workers in the manufacturing sector.
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A full, detailed data report is available at www.hudson-index.com. Statistically significant data was not obtained this month in areas impacted by Hurricanes Katrina and Rita. Hudson recently launched an updated Web site with easier access to metro market and occupational sector data. The URL remains www.hudson-index.com.
Hudson, one of the world's leading professional staffing, outsourcing and human capital solution providers, publishes the Hudson Employment Index, a monthly measure of U.S. workforce confidence in the employment market. Next month's Hudson Employment Index will be released on Nov. 2, 2005.