Employee confidence dropped sharply in February 2025, hitting its lowest level since Glassdoor began tracking the data in 2016.
According to the latest Glassdoor Employee Confidence Index, only 44.4% of employees reported a positive six-month business outlook, signaling a major decline in workplace optimism.
Rising economic uncertainty, layoffs, and increased workloads are fueling this downward trend.
Mentions of layoffs in employee reviews rose 0.3% month-over-month, reaching their highest level since July 2020. Compared to February 2024, layoff discussions have increased 5%.
Many employees are not only concerned about losing their jobs but are also struggling with added pressure as teams shrink.
Workers who remain employed after layoffs report feeling stressed and overworked while bracing for potential future cuts.
Confidence Decline Across Industries
Confidence levels declined across several key industries, with government and public administration seeing the steepest drop.
- Government & Public Administration: Confidence fell 4.9 percentage points month-over-month, the largest decline among all sectors. Over the past year, confidence has dropped 7.3 points, largely due to federal workforce cuts linked to DOGE.
- Manufacturing: Employee confidence dipped 3.7 percentage points year-over-year, as uncertainty surrounding tariffs and shifting trade policies continue to create instability.
- Aerospace & Defense: Confidence dropped 3.5 percentage points month-over-month and 6.8 points year-over-year.
- Restaurants & Food Service: Confidence fell to 38.1%, tying with government workers for the lowest among all sectors.
While many industries saw declines, some sectors experienced gains:
- Healthcare: Employee confidence rose 0.8 points month-over-month and 3.3 points year-over-year.
- Human Resources & Staffing: Confidence increased 1.7 points month-over-month and 5.1 points year-over-year, the largest annual improvement.
- Information Technology: Confidence grew by 1.2 points month-over-month and 4.9 points year-over-year.
Employee Confidence by Seniority
Mid-level employees experienced the most significant confidence drop over the past year, declining 1.7 percentage points. Entry-level workers also saw a notable decline, falling 1.4 points, marking the lowest confidence level for this group since 2016.
Senior-level employees, while less affected, also reported a decline of 0.9 percentage points, showing that economic concerns are being felt at every level.
What’s Driving the Decline?
Several factors are contributing to falling confidence among workers:
- Layoffs and Job Security Concerns: Increasing mentions of layoffs in Glassdoor reviews reflect growing fears about job stability.
- Increased Workloads: Employees report feeling overburdened as companies operate with leaner teams.
- Economic Uncertainty: Changes in trade policies, budget cuts, and inflation fears are impacting workplace sentiment.
Outlook for Employee Confidence
The downward trend in employee sentiment highlights the challenges facing workers in 2025. If economic instability continues, confidence may remain low in the coming months.
Employers looking to maintain workforce morale will need to address job security concerns, manage workloads, and provide clear communication about future plans.
FAQs
Improving an employee’s confidence requires clear communication, support, and opportunities for growth.
Encouraging open dialogue helps employees feel valued and understood, while constructive feedback builds their skills without discouragement.
Recognizing achievements, both big and small, boosts morale and reinforces positive behavior. Providing professional development opportunities, such as training programs or mentorship, helps employees gain new skills and feel more capable in their roles.
Creating a supportive work environment where employees feel safe to share ideas and take risks without fear of criticism fosters self-assurance.
Setting achievable goals and celebrating progress helps employees see their growth over time. Encouraging autonomy and trust in decision-making also enhances confidence, allowing employees to take ownership of their work.
A positive workplace culture that emphasizes collaboration rather than competition helps employees feel secure and motivated.
Ultimately, confidence grows when employees feel valued, supported, and given the tools to succeed.
Handling an employee who acts like they are the boss requires a balanced approach of clear communication, firm boundaries, and constructive feedback.
Start by privately addressing their behavior with direct but respectful conversation.
Explain their role within the team and reinforce the chain of command.
Set clear expectations about decision-making authority and responsibilities, ensuring they understand their position.
If the behavior continues, provide specific examples of when they overstepped and how it affected team dynamics.
Redirect their enthusiasm into leadership development opportunities, such as mentorship or additional responsibilities that align with their role.
Encourage collaboration rather than control by emphasizing teamwork and shared goals. If necessary, involve HR or upper management for further guidance.
Consistency in enforcing boundaries is crucial, and positive reinforcement should be given when they demonstrate improved behavior.
By addressing the issue professionally, you can prevent disruption while maintaining a positive and productive work environment.
Encouraging an employee to have confidence requires a supportive and constructive approach.
Start by acknowledging their strengths and past successes to reinforce their abilities.
Use specific examples of when they performed well to help them see their own potential.
Offer positive but realistic feedback, focusing on growth rather than perfection.
Encourage them to take on new challenges by framing mistakes as learning opportunities rather than failures.
Remind them that confidence comes with practice and experience, and that you trust their judgment. Provide mentorship or training to help build their skills and reinforce their self-assurance.
If they seem hesitant, ask what’s holding them back and offer guidance on overcoming those concerns. Emphasize that confidence is a mindset developed over time, not something they need to have instantly.
By creating a supportive environment where they feel valued and capable, you can help them build and sustain their confidence.
