While the job market continues to grow steadily, Glassdoor’s Q3 2014 Employment Confidence Survey reveals employees are feeling more confident in the job market than they have in nearly six years, indicating they may be on the move as 2014 comes to a close and in early 2015. Nearly half (47%) of employees report confidence that they can find a new job in the next six months, a new high since this survey question started nearly six years ago in Q1 2009. Plus, employee optimism for a pay raise has increased, with 44% of employees expecting a pay raise in the next year, matching its highest level in nearly six years.
Each quarter, the Glassdoor Employment Confidence Survey monitors four key indicators of employment confidence: the job market, salary expectations, job security and company outlook.
Job Market Confidence Up
Up three percentage points from last quarter, Glassdoor’s Q3 2014 Employment Confidence Survey reveals 47% of employees (including those self-employed) report confidence that they would be able to find a job matched to their experience and current compensation levels. This is a high in nearly six years, since this question started in Q1 2009. Additionally, 62% of younger employees aged 18-34 (including those self-employed) are optimistic in their ability to find a job, up 10 percentage points from last quarter and significantly higher than employees within other age groups: 35-44 years old: 46%; 45-54 years old: 39%; 55-64 years old: 38%; 65+ years old: 23%.
“With employment confidence reaching a new high, we can now begin to shift our focus back to the dynamics of a healthy job market; pay increase demand and employees on the move filling new opportunities and vacating their current jobs, which in turn creates opportunity for others,” said Rusty Rueff, Glassdoor career and workplace expert. “The high confidence among younger workers should also put employers on notice, as their funnel of prospective talent may be brighter, while they may also be susceptible to quality up-and-coming talent jumping ship. Paying special attention to the changing needs of tomorrow’s workforce will require unique forms of employee retention, as these employees in particular expect their careers to be on track with the positive economic recovery.”
Pay Raise Expectations Rise
With employees feeling more confident in the job market, they’re also more optimistic in receiving a pay raise. Employees’ expectations of receiving a pay raise or cost-of-living increase in the next 12 months are up seven percentage points to 44%, matching the highest level of optimism (Q1 2014) since this survey started in Q4 2008. In addition, 37% do not expect a pay raise, down six percentage points from last quarter. Men (48%) are significantly more likely to expect a pay raise than women (38%).
Layoff Concerns Remain Low and Stable
Fifteen percent of employees reported concerns of being laid off in the next six months, down one percentage point since last quarter and consistent with sentiment over the past year. More than one in five employees (22%) are concerned about co-workers being aid off, while men (18%) are significantly more likely to be concerned about being laid off than women (12%).
Business Outlook Remains Consistent
Two in five (39%) employees believe their company’s business outlook will improve in the next six months, down oen percentage point since last quarter, remaining relatively unchanged and consistent with the past two quarters. Nine percent believe business outlook will get worse, while 51% believe it will stay the same in the next six months.
Check out more from our Q3 2014 Glassdoor Employment Confidence Survey, including our survey supplement which provides a detailed quarter-by-quarter breakdown of results.
¹ The Glassdoor Employment Confidence survey is conducted online by Harris Poll on behalf of Glassdoor.