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Randstad employee confidence index edges down in Q2, but remains high

August 04, 2015

The outlook among American workers as measured by Randstad’s US employee confidence index edged down in the second quarter but remains exceptionally high, with 2015 marking the first year the US employee confidence index has reached 60.0 points or higher since the survey’s inception in 2004. The index fell slightly to a reading of 61.9 in the second quarter from a record-high 62.3 in the first quarter.

The index measures workers’ confidence in their personal employment situation and optimism about the economic environment. It’s based on a survey of 2,005 employed US workers in April and June.

Randstad reported 32% of workers believe more jobs are available and 53% indicate they are confident in their ability to find a new job.

Randstad’s Q2 US employee confidence index edged down despite the acceleration in job growth reported by the US Bureau of Labor Statistics in June.

“While the question of whether the US economy is ‘fully healed’ remains a topic of debate among many economists, a number of positive indicators suggest we will continue to see a positive trend,” said Jim Link, chief HR officer, Randstad North America. “More than 200,000 jobs have been added in 13 of the last 15 months, the unemployment rate has decreased from 5.7% in January 2015 to 5.3% in June and Randstad's survey findings indicate employee confidence remains high.”

“The decreased labor participation rate may raise some concerns, but it’s important to note the largest source of nonparticipants was the group who transitioned from being employed to no longer being in the workforce, as opposed to those who were underemployed and stopped looking for work, also known as discouraged workers,” Link said. “As baby boomers reach retirement age and workers exit the labor market at a rate disproportionate to that of new workers entering, we can expect to see an impact to both the unemployment and labor participation rates as a reduction in the number of overall workers tends to drive both rates downward.”