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Randstad employee confidence index rises

November 04, 2014

The outlook among American workers rose in October, according to Randstad’s US employee confidence index. The index rose to a reading of 58.2 in October from 56.4 in September. The index measures workers’ confidence in their personal employment situation and optimism about the economic environment.

“US workers are showing more confidence about both the overall economy and the jobs recovery, as demonstrated by our recent surveys,” said Jim Link, chief HR officer, Randstad North America. “As we noted in September, an employment environment not seen since before the recession is within sight, and once it arrives, employers will need to turn up their retention efforts.”

Wage growth is the last bridge to cross before reaching full economic and employment recovery, according to Link. In previous post-recession environments, accelerated hiring eventually drove up pay rates.

“Wages have yet to improve in the current recovery, but most economists anticipate they will,” he said. “And when wages do improve, the financial incentive to seek new employment will only stimulate employees' job mobility and interest in changing employers.”

Despite more confidence in the overall job market in October, fewer workers indicated plans to change jobs.

Employees expressed increased confidence in the availability of jobs, with 30 percent saying there were more jobs in October compared with 26 percent saying so in September. Also, 47 percent are confident in their ability to find a job, a three percentage point increase from September.

However, when it comes to workers’ beliefs about their current employment situation, fewer workers in October felt confident in the future of their employer as compared to those reporting confidence in September, and fewer employees plan to seek new employment. In October, 34 percent of workers said it was likely they would look for a new job, a slight decline from 36 percent who said so last month.

The index is based on a survey of 1,010 employed US adults conducted between Oct. 8 and Oct. 10.