Worker confidence encountered a setback at the beginning of the year, according to the US Worker Confidence Index released by staffing provider Yoh, a division of Day & Zimmermann, and HRO Today magazine.

The index fell 3.5 points to a reading of 110.9 in the first quarter from the fourth quarter following three consecutive quarters of increases.

“It may be easy to think the decreases seen in this quarter’s Worker Confidence Index after a prolonged period of growth are cause for alarm, but it actually may signal the opposite,” said Yoh President Emmett McGrath.

However, McGrath noted the index is still up year over year.

“Despite non-linear growth, less-than-ideal economic conditions and widespread layoffs in certain sectors, worker confidence is continuing to find solid ground. This should be a relief for employers and employees alike.”

Yoh’s Worker Confidence Index is based on a survey of workers and 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.

The perceived job security portion of the index rose to a reading of 95.9 in the first quarter from 88.0 in the fourth quarter. “Trust in leadership” also grew slightly to a reading of 107.5 in the first quarter from 105.8 in the first.

On the other hand, the indices for perceived likelihood of a raise and perceived likelihood of a promotion declined. The index level for perceived likelihood of a raise fell to 115.9 in the first quarter from 128.3 in the fourth, while the perceived likelihood of a promotion fell to 124.2 from 135.5.

“Many companies relied on raises and promotion offers during 2022 to negate inflation and staffing shortages. So, the decreases in those individual indices could be a sign that employees have recently received one or both of these incentives and don’t expect to receive anything more for some time,” McGrath said.

 “Regardless, employees are feeling much more secure in their current roles than in quarters past, and that should be celebrated. Barring any big changes to the economy in the weeks ahead, confidence among the US labor force looks set to experience a period of relative stability and incremental growth.”