Workers more confident despite weak economy

By Palm Beach Business.com

FORT LAUDERDALE — The economy continues to shed jobs by the hundreds of thousands, but worker  confidence is on the rise.

The Spherion Employee Confidence Index increased 4.0 points to 45.4 in April. The index measures workers' confidence in their personal employment situation and optimism in the economy. More workers reported optimism about the strength of the economy and fewer workers believe the economy is getting weaker.

Also during the day, the Labor Department reported the economy shedding 539,000 jobs in April, while jobless rate jumped to 8.9 percent.

"This month's Employee Confidence Index has reached its highest level in 2009, which is similar to other U.S. confidence measures issued in April,” Spherion CEO Roy Krause said. “I believe this rise can be attributed to recent economic indicators pointing to slower rates of contraction and indicating that a possible bottoming out is within reach.

"While we certainly haven't turned the corner in terms of reaching an economic recovery, the fact that we are beginning to see positive signs in consumer and construction spending, and in the contraction of manufacturing activity easing, is certainly alleviating workers' economic concerns.”

A look inside the report:

— Sixteen percent of workers believe the economy is getting stronger, an increase of 10 percentage points from March. Forty-six percent of workers still believe the economy is getting weaker, a decrease of 22 percentage points from March.

— Only five percent of U.S. adult workers surveyed believe there are more jobs available, which remained unchanged from the previous month. At the same time, 75 percent of workers report that there are fewer jobs available, compared to 78 percent in March.

— Sixty-five percent of workers feel confident in the future of their current employer, falling one percentage point from March.

— Thirty-eight percent of workers reported confidence in their ability to find a new job, a decrease of one percentage point from the previous month.

— Seventy percent of workers say it is unlikely they will lose their jobs in the next year, increasing two percentage points from March.

— Thirty-four percent of workers are likely to look for a new job in the next twelve months, a drop of two percentage points from March.

There may be signs that the economy finally is bottoming out, but businesses likely will take a conservative approach to spending. Typically, jobs data lags the economy.

“While businesses continue to operate in a challenging environment, forward-thinking employers are remaining cautious about taking any actions that could hamper their recovery when the economy improves,” Krause said.