Employee confidence dipped in November 2024, reaching its lowest point since March, according to the latest Glassdoor Employee Confidence Index.
The percentage of employees expressing a positive six-month business outlook declined slightly to 47.5% in November from 48.1% in October.
This slight decrease indicates that employee sentiment has remained relatively stable over the past eight months but has now edged below recent levels.
Despite the conclusion of the election and rising business confidence in some areas, employee sentiment appears to be experiencing a winter chill.
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Employee Confidence by Industry
The Glassdoor research showed several blue-collar sectors experienced declines in employee confidence during November:
- Construction, Repair & Maintenance Services: Confidence fell by 1.7 percentage points month-over-month. Although construction spending continues to grow, the industry has been slowing over the course of the year. There is cause for optimism, though, as interest rate cuts may help boost spending in 2025.
- Energy, Mining & Utilities: A decline of 2.1 percentage points was observed. Despite being an industry traditionally reliant on the political climate, oil and natural gas production hit record highs in the last year. Additionally, more jobs today are in green energy industries, where policy uncertainty around Inflation Reduction Act incentives may be clouding the outlook.
- Manufacturing: Employee confidence decreased by 1.2 percentage points. Investment and spending rose following the Inflation Reduction Act and CHIPS Act; however, incentives now in question under the new administration raise policy uncertainty for employers in the sector.
- Transportation & Logistics: A drop of 1.5 percentage points was noted as the holiday season commenced. Holiday spending is projected to grow year-over-year, though as household budgets tighten, growth may be more moderate this year.
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Employee Confidence by Seniority
Year-over-year, employee confidence has increased across all seniority levels, according to the Glassdoor research:
- Senior-Level Employees: An increase of 1.4 percentage points.
- Entry-Level Employees: A rise of 1.3 percentage points.
- Mid-Level Employees: Slightly weaker gains, with an increase of 0.9 percentage points.
The more significant increase among senior employees may suggest optimism, as these leaders drive investment and hiring decisions.
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Key Takeaways
- Employee confidence reached its lowest level since March 2024, with 47.5% expressing a positive six-month business outlook in November.
- Blue-collar industries, including construction, energy, manufacturing, and transportation, experienced notable declines in employee confidence.
- Despite overall declines, all seniority levels saw year-over-year increases in confidence, with senior-level employees showing the most significant rise.
As 2024 concludes, the slight downturn in employee confidence highlights ongoing uncertainties in various industries.
However, the year-over-year improvements across seniority levels may indicate a cautiously optimistic outlook for the coming year.
