Posted by Elena del Valle on February 27, 2007
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Graphic: Hudson Employment Index
According to Hudson Employment Index data, worker confidence slid for the second consecutive month for Hispanics, and dropped after a December 2006 rebound for African-American workers in January 2007. The monthly Hudson Employment IndexSM for Hispanics fell 4.8 points to 98.7, and dropped 7.6 points to 84.8 for African-Americans. The composite index, based on responses from approximately 9,000 workers across all races and ethnicities, climbed up 1.5 points to 104.2.
The Hudson Employment Index for Hispanic workers revealed that the number of workers who said their financial situation was getting worse rose ten points in January to 42 percent. There was a five-point decrease in the number of employees expecting their company to hire (33 percent). However, fewer workers also anticipated their company would be reducing headcount in the coming months, 15 percent compared to 18 percent in December 2006. Fewer workers were worried about losing their job in January 2007 (15 percent) than in December 2006 (20 percent).
The Hudson Employment Index for African-Americans found that there was a nine-point drop in the number of workers expecting their company to increase headcount (25 percent), the lowest on record for African Americans. The number of workers who said their financial situation was getting better dropped five points in January 2007 to 35 percent. Compared to December 2006 when 21 percent of the workforce was concerned about losing their jobs, 23 percent made that statement in January 2007.
“While not discounting the positive implications of the improvement in the Index, the start of the year tends to reveal a greater sense of optimism, resulting from fresh budgets, new hiring plans and generally high hopes for the year,” said Steve Wolfe, senior vice president, Hudson. “The true test will be in the months to come if the record low concerns around layoffs and job security concerns are sustained.”
The Index also showed workers in general felt more secure in their current employment in January 2007. That month the number of workers concerned about losing their own job fell two points to 16 percent. There was a one-point decrease in the number of employees expecting their companies to lay off staff, down from 15 percent in December 2006. Job satisfaction began to rebound in January 2007, as the number of individuals happy with their job rose one point to 74 percent. There was a one-point decrease to 37 percent among employees who indicated their finances were getting worse.