With continued job growth and a declining unemployment rate in the U.S., employee confidence in the job market is at a new high. According to Glassdoor’s Q2 2015 Employment Confidence Survey¹, the majority (52%) of employees2 (including those self-employed) report optimism in the job market. For the first time, this key indicator of employee confidence has surpassed 50% since this question was first asked in Q1 2009.
Beyond job market confidence, the quarterly Glassdoor survey explores three additional measures of employment confidence: salary expectations, company outlook and job security.
Majority of Employees Confident in Job Market – A First in More than 6 Years
For the first time since this survey question was asked in Q1 2009, the majority (52%) of employees (including those self-employed) report confidence that if they lost their job, they would be able to find a job matched to their experience and current compensation levels in the next six months. This is up 4 percentage points since last quarter (48%). Of those who are unemployed but looking for work, optimism in the job market is down slightly, by 1 percentage point to 46% since last quarter, but up 14 percentage points compared to last year (Q2 2014, 32%). When we look at age, employees (including those self-employed) aged 18-24 years old (65%) and aged 35-44 years old (60%) are more optimistic in their ability to find a job compared to employees aged 45-54 (40%) and 55-64 (38%).
Pay Raise Expectations at a New High
Along with rising job market optimism, employee expecatations for pay raises are increasing, as 47% of employees expect a pay raise or cost-of-living increase in the next 12 months, reaching a new six-year high since this question was first asked in Q4 2008, and up slightly, by 2 percentage points since last quarter (45%). Pay raise confidence is also higher among men (50%) than women (42%).
This rise in pay raise expectations coincides with two-thirds (61%) of employees (who reported a positive change at their company in the past six months) reporting they were awarded new perks, new stock or other compensation over the last six months, up 10 percentage points since last quarter.
“As we see consumer confidence and the economy surging, we also see job market confidence, expectations for a pay raise and business outlook optimism not only increasing, but hitting new highs, further supporting that we are currently in the best job seeker’s market we’ve seen in a generation. High job market confidence creates new job opportunities, making it a better time than ever to job search,” said Rusty Rueff, Glassdoor career and workplace expert. “Employers should be on alert that employees may be more willing to jump ship or ask for a pay raise, especially younger workers. This subset of employees will need special attention because, for the first time since they entered the workforce, they are feeling the effects of a very healthy job market. Extra attention on retention efforts will help reduce turnover.”
Majority of Employees Optimistic in Company’s Business Outlook
With salary expectations and job market optimism at new highs, the survey also found business outlook to be improving among employees. At a new high since this question was first asked in Q1 2009, a majority of employees (51%) believe their company’s business outlook will improve in the next six months, up 4 percentage points since last quarter. Seven percent believe business will get worse, while 42% believe it will stay the same.
Check out more from our Q2 2015 Glassdoor Employment Confidence Survey, including our survey supplement which provides a detailed quarter-by-quarter breakdown of results.
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1 The Q2 2015 survey was conducted online within the United States by Harris Poll on behalf of Glassdoor from June 18-22, 2015 among 2,019 adults ages 18 and older. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables, please contact firstname.lastname@example.org.
2 For the purposes of this study, “employees” were defined as U.S. adults 18+ employed full time and/or part time unless otherwise indicated.