Employee Confidence Drops To New Lows During Hiring Slowdown

A recent study by Glassdoor shows employee confidence and business outlook in the workforce is significantly down compared to last year, largely due to worries related to job security.

2024 is beginning with a tremor of unease in the workforce, as the most recent Glassdoor Employee Confidence Index suggests employee confidence has taken a nosedive — marked by the lowest level of optimism since the survey’s inception.

According to Glassdoor’s report, only 45.6% of employees express a positive business outlook for the next six months. This downward trend is likely fueled by growing anxieties over job security. Mentions of layoffs on Glassdoor have surged by 27% year-over-year, while discussions about hiring freezes are reported to have risen by 81%.

These updated figures reflect a chilling reality for many workers, particularly those in information, construction, education and health services, and leisure and hospitality — industries experiencing particularly sharp declines in confidence.

The report also reveals that employee confidence for mid-level employees in January dropped 48.9%, only slightly higher than entry-level employees (48.8%).

Employee morale and productivity are likely at risk this year, due in part to the increased pressure and uncertainty in their roles, Glassdoor’s data suggest. However, it could serve as a reminder for employers and employees to adapt and navigate the modern challenges of the cooling labor market.

The data shows that employers should prioritize transparent communication, address concerns related to job security and show commitment to employee well-being. Investing in upskilling and reskilling initiatives can also improve resilience and adaptability in the face of change.