The Hudson Employment Index(SM) fell 2.6 points to 102.7 in December, primarily as a result of lowered job satisfaction and increased job loss concerns. The monthly measure lost ground following a nearly four-point rise in November. It also fell short of last December's 103.4 Index. Despite the decline, hiring expectations held steady and December's Index was generally in line with readings throughout the second half of the year.
Job Satisfaction Dips Noticeably
Just 73 percent of workers said they were happy with their current job, a two-point drop from November and the lowest reading since August 2005. Last year at this juncture, 75 percent of workers expressed job satisfaction.
"Finding a new job tops many workers' new year's resolutions," said Steve Wolfe, senior vice president, Hudson. "Increased job dissatisfaction, coupled with extremely low unemployment, suggests many workers are poised to explore new career options in 2007." Last month, a Hudson survey found that 39 percent of workers were very or somewhat likely to look for a new job in 2007.
Job Loss Concerns Temper Steady Hiring Expectations
Expected hiring remained steady in December as 30 percent of workers anticipated their firms would hire in coming months. However, the number of workers worried about losing their jobs rose from 17 to 18 percent this month. This trend was exacerbated among private firm managers, who reported a three-point increase in job loss concerns, as well as a three-point increase in expected layoffs.
Personal Finance Sentiments Take a Slight Hit During the Holiday Season
Evaluations of personal finances also took a slight hit in December, with workers who said they were good or excellent falling one percent to 44 percent and those who said their finances were getting better also falling one percent, to 41 percent. These sentiments contrast with the same time last year, when financial ratings and expectations both rose noticeably at year-end.
The Index closed 2006 with a 103.7 average, compared to a 2005 average of 101.5. "Despite the downturn in worker confidence at the end of the year, 2006's average ended more than two points higher than 2005's -- not a bad showing, all in all," summarized Wolfe.
All Workers All Workers All Workers All Workers December 2006 November 2006 Average 2006 December 2005 ------------- ------------- ------------ ------------- Hudson Employment Index 102.7 105.3 103.7 103.4 Happy with Job 73% 75% 74% 75% Worried about Losing job 18% 17% 19% 20% Expected Hiring 30% 30% 31% 30% Expected Layoffs 15% 15% 16% 17% Finances Getting Better 41% 42% 41% 43%
Hudson, one of the world's leading professional staffing, outsourcing and talent management solutions providers, publishes the Hudson Employment Index, a monthly measure of U.S. worker confidence in the employment market. Results are not seasonally adjusted. Next month's Hudson Employment Index will be released on January 31, 2007.
The Hudson Employment Index
The Hudson Employment Index (www.Hudson-Index.com) is based on monthly telephone surveys with approximately 9,000 U.S. workers. The Index tracks aggregate employment trends regarding career opportunities, hiring intentions, job satisfaction and retention. The data is compiled each month by Rasmussen Reports, LLC, an independent research firm (www.RasmussenReports.com).
Survey results are segmented by 11 cities: Atlanta, Boston, Chicago, Dallas, Los Angeles, Minneapolis-St. Paul, New York, Philadelphia, San Francisco, Tampa, and Washington, D.C. The Index surveys five occupational sectors: accounting and finance, health care, information technology, manufacturing and legal. The Hudson Employment Index also measures employee confidence by age, gender, race and compensation.
Data reported in this release is based on a national telephone survey of 9,288 working Americans during the month of December. The margin of sampling error for a survey based on this number of interviews is approximately +/-1 percent with a 95 percent level of confidence. The data is not seasonally adjusted. It will be reviewed at year-end to determine if seasonal adjustments are appropriate. The Hudson Employment Index is a service mark owned by Hudson Highland Group, Inc.
Hudson (NASDAQ: HHGP) is a leading provider of permanent recruitment, contract professionals and talent management services worldwide. From single placements to total outsourced solutions, Hudson helps clients achieve greater organizational performance by assessing, recruiting, developing and engaging the best and brightest people for their businesses. The company employs more than 3,600 professionals serving clients and candidates in more than 20 countries. More information is available at www.hudson.com
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