NEW YORK, N.Y. – Confidence among U.S. workers weakened in May as the Hudson Employment Index declined 2.5 points from 102.4 to 99.9, due to increased concerns about personal finances, hiring intentions and job loss. The Index fell below its December 2003, base of 100 for the first time in its history. The latest reading is also significantly lower than one year ago, when it was 104.
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SURVEY FINDINGS. Workers continue to be concerned about their personal finances, as they have been for the last few months. The percent of workers expecting their financial situation to improve fell two points in May to 39 percent, while the number anticipating it would worsen rose two points to 42 percent. More workers are pessimistic than optimistic about their finances for the first time in over a year.
Additionally, workers are worried about their firms' hiring plans. Nearly one-fifth (19 percent) of the workforce expects their organizations to lay off staff in the coming months, up from 17 percent in March and April. Similarly, the percent of workers nervous about losing their own jobs rose to its highest level in more than a year at 22 percent. The number of workers who expect their firms to hire was essentially unchanged this month.
| APRIL 2005 EMPLOYMENT SITUATION |
Individuals concerned by recent employment indexes showing a decline in worker optimism should weigh the data against recent reports from the U.S. Department of Labor, which paints a slightly more positive picture. Employment rose in April, and the unemployment rate was unchanged at 5.2 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Nonfarm payroll employment increased by 274,000 over the month. Job growth was widespread, with gains in construction, mining, and several service-providing industries. Total employment grew by 598,000 in April to 141.1 million, and the employment-to-population ratio – the proportion of the population age 16 and over with jobs – edged up to 62.6 percent. The civilian labor force increased by 605,000 in April to 148.8 million; the labor force participation rate, at 66 percent, also was up over the month. Average hourly earnings continue to rise from $15.91 per hour in February to $15.95 per hour in March and $16 per hour in April. Additionally, average weekly earnings are up $4.88 over the month to $542.40 per week in April from $537.52 in March. Data for May will be available early next week. Visit Lawn & Landscape Online to find out the employment results for the month. |
Despite workers' concerns, optimism continues to climb among managers. The percent anticipating their companies will hire in the coming months rose two points to 35 percent, while the percent expecting layoffs dropped a point to 18 percent. Managers in the private sector were even more bullish as the number predicting increased hiring climbed from 44 percent last month to 48 percent in May.
"There appears to be a significant divide between workers' and managers' perceptions when it comes to their employers' hiring plans," said Jeff Anderson, senior vice president, Hudson, North America. "While government reports and Hudson's business both indicate that certain sectors are experiencing a slight increase in layoffs due to seasonal factors, many industries continue to grow. Management needs to communicate the prospects for growth and state of their business – whether positive or negative – to keep staff informed and engaged."
Younger workers and those earning less than $40,000 per year also saw a considerable decline in optimism, with job loss cited as a primary concern among these two groups.
A more detailed report is available at www.hudson-index.com. In addition to age and salary details, the Index is broken down by industry. The four main categories are heath care, IT, accounting/finance and manufacturing. An “other services” category also is listed. A representative from Hudson told Lawn & Landscape that survey respondents classify themselves into what they feel is the appropriate category. While the “other services” section is usually comprised of professional services, construction and green industry services would likely be included in the manufacturing section.
METHODOLOGY. 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 July 6, 2005.
The Hudson Employment Index measures the U.S. workforce's confidence in the employment market. Based upon monthly telephone surveys with approximately 9,000 U.S. workers, the Index tracks aggregate employment trends around career opportunities, hiring intentions, job satisfaction and retention. The data is compiled each month by Rasmussen Reports, an independent research firm.
Survey results are segmented by eleven metropolitan cities and four industries. The metro markets are: Atlanta, Boston, Chicago, Dallas, Los Angeles, Minneapolis-St. Paul, New York, Philadelphia, San Francisco, Tampa, and Washington, D.C. Industry sectors surveyed are accounting and finance, healthcare, information technology, and manufacturing. The Hudson Employment Index also measures employee confidence by age, gender, race and compensation levels.
Data reported in this release is based upon a national telephone survey of 9,298 working Americans during the month of May. The margin of sampling error for a survey based upon this many interviews is approximately 1 percent with a 95 percent level of confidence. The data is not seasonally adjusted. It will be reviewed at year-end to determine if seasonal adjustments are appropriate.