US Workers Turn Gloomy on Their Employers’ Outlook, Index Shows


US workers are becoming gloomier about the near-term business outlook for their employers, according to a new index.

Employee confidence in the six-month outlook for their employer fell to 47.6% in July from 53.4% a year ago, according to data from Glassdoor, a website where current and former employees anonymously review companies.

Business Outlook Stumbles

Employees' outlook for their employers undergoes a meaningful deterioration

Source: Glassdoor

Note: Share of employees who believe their employers have a positive business outlook over the next 6 months

The Glassdoor Employee Confidence Index has tracked sentiment since 2016. The results were made publicly available for the first time on Monday.

Broadly, the index shows a steady increase in confidence since 2016 — with some interruptions at the start of the pandemic — toward a peak in early 2022. Since then, it’s fallen back to the lowest level since the survey began, with a majority of employees becoming pessimistic.

Within firms, sentiment has declined the most among mid-senior-level employees, falling 6.2 percentage points in the year through July 2023. By contrast, among both higher-level and entry-level employees there’s been seen little change over the last year.

“This may reflect that in particular, mid-level managers may be feeling the squeeze as businesses pull back on pandemic-era expansion,” according to the report.

Directors and executives have a much rosier view, with roughly two-thirds saying they have a positive outlook for their firm.

By industry, sentiment reversed in several sectors. Recent waves of layoffs in the information industry drove a large drop in confidence.

Employee Confidence Index by Industry

The information sector has seen the steepest drop since July 2022, while sentiment in the construction sector improved

Source: Glassdoor

Two years ago, more than 60% of technology workers had a positive outlook but that fell to 48.6% last month. Manufacturing has seen a decline of 8 percentage points since July 2022, and other industries where confidence has fallen include professional and business services and finance.

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