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A survey released this morning by the human resources and staffing firm Hudson found that employee confidence is on the rise. The Hudson Employment Index, which gauges workforce sentiment by surveying U.S. workers by telephone, rose from a reading of 102.6 in January to 108.2 last month. According to Hudson, this was among the highest readings on record.
Why are workers so ebullient? A growing number believe that their own firms are on the verge of expanding payrolls, which is always a good sign for the economy.
According to the Hudson index, 33 percent of workers believe their firms are ready to hire more staff. This represents the highest share of workers reflecting that belief since October 2004.
But it's not just the rank and file. Even among managers at private-sector firms, 45 percent now believe their employers are ready to start hiring again, up from 38 percent who thought so in January. "On the heels of a conservative start to the year, managers are feeling more comfortable putting their 2006 hiring plans in gear," says Steve Wolfe, an executive vice president for Hudson's North American operations.
"This news," he added, "along with a strong [gross domestic product], lower unemployment rates, and the growing demand for skilled labor in certain sectors such as healthcare, financial services, and [information technology], are strong indications that the economy is growing steadily."
A couple of days from now, Wall Street will get a snapshot of the employment situation when the Labor Department is scheduled to release its much-anticipated February jobs report. That report, due out on Friday morning, will reveal how many new jobs were created and update the nation's unemployment rate.
