Worker Confidence At Lowest Level for Four Years – Monster Jobs Confidence Index
The latest Monster Jobs Confidence Index shows worker confidence at its lowest for four years. Over a third of workers feel less confident about their job due to the current political climate. A quarter of workers don’t feel confident about their job security in the next six months.
Derek Jenkins, General Manager UK & Ireland Monster says,
“It’s really disconcerting to see that confidence is continuing to drop amongst UK workers. Taking into account ongoing political turmoil in the UK and continued uncertainty around Brexit it’s understandable. It is also important to consider the quality of jobs we’re seeing in the UK and how this impacts job security.
In recent years we’ve seen a shift away from traditional part-time roles and an increase in gigging work and zero hours contracts. Although this gives the impression that more people are in work, this type of work is not suitable for everyone and can leave workers feeling demotivated and uncertain about their futures.
Like confidence, job quality is a personal opinion and there are some groups in society, such as students and carers, who appreciate and benefit from the flexibility. Employers, should identify the type of work that is best for a person’s situation as that will contribute to their sense of security and in turn, the confidence they have in their employment. For some that will be a full-time or part-time permanent job, for others it will be gigging.”
What does the Index measure?
The Monster Jobs Confidence Index is a holistic way of assessing the UK labour market. It is the only index to assess how secure workers feel in the place of work and how confident they feel in their career. We combine consumer and business confidence measures, labour market indicators and survey-based indicators.
Why has jobs confidence dropped?
The UK’s current political situation and Brexit uncertainty are both harming confidence. Over a third (35%) of those asked said that the political landscape makes them feel unconfident about their job. Despite unemployment falling to its lowest level since the 1970s, job confidence is low due to a lack of quality jobs and concerns about job security. The drop in business confidence has impacted this quarter’s index score, as well as levels of regional employment inequality.
A quarter of UK workers feel unconfident about their future career prospects
We asked workers about likelihood of losing their job over the next six months. Half of those asked said that they feel confident in their current job. However, a quarter are unconfident about their prospects. In the longer term 42% said that they were confident in their ability to progress over the next 5 years – a slight uplift from last quarter.
Job quality is impacting job security
The rise of the gig economy has led to a dramatic increase in the amount of insecure work. This gives a mixed picture of the UK’s current situation. Wages are growing at a decent pace. Unemployment is at its lowest for 40+ years, but more workers do not have job earnings security. Many people are worried about the future of their employment. This report highlights the reasons it’s important to consider job quality as well as just ‘the numbers’. These include the impact on personal lives, wellbeing, innovation and the NHS.
Educational differences impact workers’ confidence
Those with highest levels of education are most likely to feel confident about their employment. Over half (54%) of workers with a postgraduate degree said that they were ‘confident’ or ‘very confident’ about their ability to progress in their careers. Workers whose highest qualification is at GCSE level, or equivalent, have very low levels of confidence, with only 35% saying they feel confident about long-term career prospects.
Overall jobs confidence is likely to continue falling throughout 2019
Although the official unemployment rate for the rest of the year isn’t likely to rise, jobs confidence will probably continue falling. A change in Prime Minister, the threat of a general election, and ongoing Brexit uncertainty, will all cause concern for workers and business owners. This in turn will reduce levels of confidence in the employment market.
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About the Monster Jobs Confidence Index:
The Monster Jobs Confidence Index is a quarterly report run with the Cebr tracking sentiment in the labour market. It takes a holistic view of confidence in the labour market assessing the factors impacting confidence by including official statistics from the ONS and other government sources, as well as using survey-based indicators to directly ask workers how confident they are in their job security and ability to progress in their career.