Double Dip In Employment Confidence; Q3 Survey Finds Increase In Layoffs And Pay Cuts
Despite the glimmer of hope from the National Bureau of Economic Research that the “recession ended”, it seems that employees are not seeing the light at the end of the tunnel. Glassdoor‘s quarterly Employment Confidence Survey was released today, and findings show that more Americans are concerned about the future of their jobs and hiring prospects than in the previous quarters
After five consecutive quarters of declines, employee layoff concerns rose this past quarter to levels not seen since 2009. One in five employees (20 percent) are concerned that they could be laid off in the next six months. Employees are even more worried for their colleagues: a third of employees are concerned their co-workers will lose their jobs in the next six months.
With layoff concerns growing, it’s not too surprising to find that fewer are expecting a pay raise in the next 12 months (37 percent) than compared to last quarter (40 percent). Employees are also reporting the lowest level of optimism for their company’s outlook since Q2 2009. Slightly less than two in five (38 percent) employees and those who are self employed think their company’s outlook will get better in the next six months, down a whopping seven points from the last quarter.
For job seekers employment prospects don’t seem to be getting any brighter. Among those unemployed but looking, more than one-third (34 percent) say it is unlikely they will find a job in the next six months, up five points to the highest level since the height of the recession at the beginning of 2009. When employees were asked about the probability of being able to find another job that match their experience and compensation levels, 35 percent said they think it would be unlikely and 28 percent are uncertain.
As Glassdoor career expert Rusty Rueff points out, “Until employees and unemployed job seekers see steady positive changes related to the job market and their bank accounts, it’s unlikely we’ll see stability in employment confidence.”
To put a silver lining around this quarter’s news, the survey did show that fewer employees reported their organizations initiated or communicated plans to reduce or eliminate bonuses (15 percent) than last quarter (19 percent). Plus, there were fewer reported furloughs, unpaid leave, mandatory vacation (17 percent), cutbacks in perks (i.e. commuter subsidies) (16 percent), or job restructings (10 percent).
Interested to read how the current state of employment is affecting people of varying ages, geographic locations, click here to read the full report.
What do you think about claims that the recession has ended? Have you seen or felt improvements in your employment status?