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Worker confidence sinks, SFN index finds

By Palm Beach Business.com

FORT LAUDERDALE — The SFN Group Employee Confidence Index fell for the third consecutive month, dropping 6.8 points to 41.0 in August. The index, which measures workers' confidence in their personal employment situation and optimism in the economic environment, revealed waning confidence among workers, specifically in regard to the strength of the economy and the future of their current employers.  

"Worker confidence continued to decrease this month, reaching its lowest point since February of 2009, registering at 41.0 in August," says Roy Krause, president and CEO of SFN Group, Inc. "There is little doubt that recent plunges in the stock market and slow employment growth in the first half of 2011 have fueled fears of another possible recession in the minds of U.S. workers. “

Krause noted, however, that there are positive signs in the labor market that indicate a second recession is unlikely, including a low unemployment rate for professionals and expanding demand for temporary workers.

SFN released the index on the same day the Labor Department reported the national economy added zero jobs in August, with the unemployment rate holding steady at 9.2 percent.

A look inside the numbers:

• Sixty-three percent of U.S. workers believe the economy has weakened, up from the 42 percent of workers who expressed a lack of confidence in July. This is an increase of 21 percentage points month-over-month.
• More than two-thirds (67 percent) of workers believe there are fewer jobs available, increasing six percentage points from July.
• In August, fewer workers are confident in the future of their current employer. Specifically, 54 percent of workers expressed confidence in August in comparison to 59 percent the prior month.
• Thirty-five percent of workers are confident in their ability to find a new job in contrast to 38 percent of workers who expressed confidence in July.
• Two-thirds (66 percent) of workers believe that it is unlikely they will lose their jobs in the next 12 months. This is a decrease of three percentage points from the previous month.
• Thirty-five percent of workers are likely to look for a new job in the next 12 months, an increase of two percentage points from July.

“Although a double-dip recession cannot be completely ruled out, I believe that this recovery will be cautious and slow-moving, and may hit several soft patches along the way," Krause said.