SOURCE: Hudson

December 06, 2006 06:00 ET

Worker Confidence Increased Significantly in November

Hudson Employment Index(SM) Rises to Strongest Reading Since April

NEW YORK, NY -- (MARKET WIRE) -- December 6, 2006 -- The Hudson Employment Index(SM) gained nearly four points in November, climbing from 101.4 in October to 105.3. Improved hiring expectations and greater optimism regarding personal finances caused the measure of worker confidence to record its strongest reading since April. The latest Index is also more than five points higher than last November's 100.1.

Hiring Forecast Perks Up

After peaking at 32 percent in July, the number of workers expecting their employer to hire fell steadily through October, dipping to 28 percent. That figure rebounded to 30 percent in November, while the number of workers forecasting layoffs declined for the sixth consecutive month.

Personal Finances Show Strength Approaching Holiday Season

Employees were more optimistic about the state of their finances in November than previously, as the number who rated their situation favorably rose two points to 45 percent. At the same time, the number who said their finances were improving held at a healthy 42 percent, while the number who reported the opposite remained low at 38 percent.

"Entering into the holiday season, it is somewhat unexpected to see workers looking positively at their financial situations, although this may bode well for retailers," said Steve Wolfe, senior vice president, Hudson. "Looking ahead, we expect this sentiment to change, as most of the work force will soon have to stretch their paychecks to cover credit card bills inflated with holiday spending and higher than usual heating bills."

A Stable 2006

Comparing worker confidence year-over-year, a stronger sense of job security and fewer concerns regarding layoffs contributed to the increase. This November, the number of workers forecasting job cuts was 15 percent, while 17 percent were worried about job loss. Those figures were 18 percent and 21 percent, respectively, one year ago.

                                   All        All        All
                                Workers    Workers    Workers    Managers
                                Nov 2006   Oct 2006   Nov 2005   Nov 2006
                                ---------  ---------  ---------  ---------
Hudson Employment Index           105.3      101.4      100.1      116.8
                                ---------  ---------  ---------  ---------
Expected Hiring                    30%        28%        30%        31%
                                ---------  ---------  ---------  ---------
Rate Personal Finances
 Favorably                         45%        43%        43%        56%
                                ---------  ---------  ---------  ---------
Concerned About Job Loss           17%        18%        21%        15%
                                ---------  ---------  ---------  ---------

*A more detailed data report is available at www.hudson-index.com.

Hudson, one of the world's leading professional staffing, outsourcing and talent management solutions providers, publishes the Hudson Employment Index, a monthly measure of U.S. worker confidence in the employment market. Results are not seasonally adjusted. Next month's Hudson Employment Index will be released on January 3.

The Hudson Employment Index

The Hudson Employment Index (Hudson-Index.com) is based on monthly telephone surveys with approximately 9,000 U.S. workers. The Index tracks aggregate employment trends regarding career opportunities, hiring intentions, job satisfaction and retention. The data is compiled each month by Rasmussen Reports, LLC, an independent research firm (www.RasmussenReports.com).

Survey results are segmented by 11 cities: Atlanta, Boston, Chicago, Dallas, Los Angeles, Minneapolis-St. Paul, New York, Philadelphia, San Francisco, Tampa, and Washington, D.C. The Index surveys five occupational sectors: accounting and finance, health care, information technology, manufacturing and legal. The Hudson Employment Index also measures employee confidence by age, gender, race and compensation.

Data reported in this release is based on a national telephone survey of 9,288 working Americans during the month of November. The margin of sampling error for a survey based on this number of interviews is approximately +/-1 percent with a 95 percent level of confidence. The data is not seasonally adjusted. It will be reviewed at year-end to determine if seasonal adjustments are appropriate. The Hudson Employment Index is a service mark owned by Hudson Highland Group, Inc.

About Hudson

Hudson (NASDAQ: HHGP) is a leading provider of permanent recruitment, contract professionals and talent management services worldwide. From single placements to total outsourced solutions, Hudson helps clients achieve greater organizational performance by assessing, recruiting, developing and engaging the best and brightest people for their businesses. The company employs more than 3,600 professionals serving clients and candidates in more than 20 countries. More information is available at www.hudson.com

Special Note: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve certain risks and uncertainties, including statements regarding the company's strategic direction, prospects and future results. Certain factors, including factors outside of our control, may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, risks associated with acquisitions, competition, seasonality and the other risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission, which discussions are incorporated in this release by reference.

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