Employee confidence took a hit in January, signaling a concerning start to 2025, according to new research from Glassdoor.
The data in the Glassdoor Employee Confidence Index shows the share of employees reporting a positive six-month business outlook fell to 45.1%, marking the lowest point since February 2024.
Economic Anxieties Continue to Weigh on Workers
Several factors are contributing to the decline in confidence.
One key factor is the resurgence of economic fears.
Glassdoor’s data shows the number of reviews mentioning layoffs rose 5% month-over-month in January, continuing a trend of heightened concern over job security.
This uptick is not an isolated incident, as layoffs have been a recurring theme throughout 2024 and remain elevated year-over-year.
Economic concerns are also reflected in reviews discussing inflation and recession.
Mentions of inflation rose by 9% in January, while mentions of recession surged 29%.
Though both measures are still lower compared to last year—down 20% for inflation and 19% for recession—the renewed focus on these issues points to continued unease among employees.
The Sectors Feeling the Most Pressure
January’s data also revealed notable trends across different industries.
Some sectors experienced significant drops in employee confidence, while others saw a slight uptick.
- Government & Public Administration saw the largest decline, dropping 2.8 percentage points month-over-month. The uncertain political landscape and questions about job security under a new administration may be driving this dip.
- Hotels & Travel Accommodation (-2.5pp) and Retail & Wholesale (-1pp) also saw declines, likely due to factors like winter weather affecting travel and retail activity.
- Restaurants & Food Service, on the other hand, saw a slight improvement (+0.1pp), suggesting stability despite the broader economic concerns.
Employee Confidence by Industry
The following table highlights employee confidence across various sectors:
| Industry | Jan 2024 | Dec 2024 | Jan 2025 | MoM Change | YoY Change |
|---|---|---|---|---|---|
| Aerospace & Defense | 50.1% | 54.9% | 55.1% | +0.3% | +5.1% |
| Arts, Entertainment & Recreation | 39.1% | 41.5% | 42.2% | +0.7% | +3.0% |
| Construction & Maintenance | 55.8% | 53.0% | 54.6% | +1.6% | -1.2% |
| Education | 44.9% | 47.9% | 48.0% | +0.0% | +3.1% |
| Financial Services | 49.2% | 52.6% | 52.3% | -0.3% | +3.1% |
| Government & Public Administration | 42.4% | 48.0% | 45.2% | -2.8% | +2.8% |
| Healthcare | 47.7% | 50.9% | 49.7% | -1.2% | +2.0% |
| Hotels & Travel Accommodation | 50.4% | 48.5% | 46.0% | -2.5% | -4.4% |
| Manufacturing | 44.6% | 42.1% | 42.0% | -0.1% | -2.6% |
| Restaurants & Food Service | 35.6% | 40.4% | 40.5% | +0.1% | +5.0% |
Confidence Varies by Job Level
The Glassdoor report also sheds light on how confidence varies by job level.
Mid-level employees saw the most significant drop in confidence, falling by 1.5 percentage points month-over-month.
This shift highlights the ongoing uncertainty many mid-level workers face in a shifting economy.
Interestingly, entry-level and senior-level employees saw slight gains in sentiment.
Entry-level workers saw a modest 0.3 percentage point increase year-over-year, while senior-level employees reported a 0.2 percentage point improvement.
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The Road Ahead: Can Confidence Rebound?
Despite the setbacks in January, there are signs certain industries and job levels are managing to maintain or even improve confidence.
However, the broader trend suggests that many workers remain anxious about the economy, particularly with the continuing uncertainty around inflation, layoffs, and a potential recession.
As 2025 unfolds, it remains to be seen whether the economic outlook improves or if employee confidence continues to slide further.
Companies will need to focus on addressing worker concerns, including job security, economic stability, and the ability to manage in a challenging business environment.
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Key Takeaways
- Employee confidence dropped to 45.1% in January 2025, its lowest point since February 2024.
- Concerns over layoffs, inflation, and recession are fueling employee unease.
- The government & public administration sector experienced the largest decline, while restaurants & food service saw a modest improvement.
- Mid-level employees experienced the steepest drop in confidence.
As workers continue to navigate these economic pressures, how companies address these issues will be crucial in shaping the employee sentiment landscape in the months to come.
