Worker confidence rises, finances still a concern

Confidence among U.S. workers rose slightly in April as the Hudson Employment Index edged up 1.2 points from 101.2 to 102.4. Despite the increase, workers expressed continued uneasiness about their personal finances, likely because of escalating energy prices. Forty percent reported that their financial situation is worsening; this is the highest level of concern in more than a year. Additionally, the current Index is significantly lower than April 2004, when it registered at 107.0.

The percentage of workers expecting their firms to hire in the coming months rose one point in April to 32 percent, the highest it has been in six months. Private sector managers especially were bullish about hiring, with 44 percent expecting their firms' workforce to grow, a 10 percent increase since last month. A rise in job satisfaction also aided the Index's slight upward movement, as the percent of workers satisfied with their jobs climbed one point to 74 percent.

Notable movements in sector indices occurred this month. The Index for accounting and finance workers dropped 3.5 points to 103.7, particularly as a result of lowered optimism about hiring. The manufacturing sector saw an even more dramatic decline, falling ten points to 80.3. In particular, this decrease was due to lowered optimism around personal finances and more concerns around layoffs, which correlates with national trends within this sector. However, Healthcare and IT saw respectable increases, coming in at 109.5 and 114.2 respectively.

When comparing reports of anticipated hiring by salary level and company size, other noteworthy differences emerged. Those individuals earning less than $40,000 per year were less optimistic about their companies' hiring plans than the previous month, as were those working at companies with more than 250 employees. In contrast, workers making more than $75,000 per year or at companies with 50-250 employees were more upbeat in April.