SOURCE: Hudson

December 19, 2007 06:00 ET

Are Workers Losing Faith in the Economy?

Hudson Survey Reveals Workers Sense Greater Pessimism From Company Heads

NEW YORK, NY--(Marketwire - December 19, 2007) - After facing some ups and downs in 2007, U.S. workers' outlook for 2008 is glum, according to a new survey by Hudson. Workers are less optimistic about the job market heading into the new year than they were a year ago.

Furthermore, nearly half (46 percent) feel their organizations' leaders are expecting the economy to get worse next year. Just 22 percent state that executives think the economy is getting better.

Work Force Uneasy With 2008 Employment Prospects

At this time last year, just 15 percent of workers thought their employment prospects would be worse in the new year. Currently, however, more than one in five workers (21 percent) share that sentiment heading into 2008. In addition, 30 percent say it is not at all likely they will be looking for a new job next year, compared to 26 percent one year ago.

"When many signs point to a slower economy, it is only natural for workers to take fewer risks and opt to stay at their current jobs," said Robert Morgan, co-president of Recruitment and Talent Management, Hudson. "While this may give a boost to retention rates, company leaders should not forget about the importance of bringing fresh talent into an organization."

Financial Outlook No Better

Compared to 2006 when 63 percent of employees said they expected to earn significantly or a little bit more in 2007, just 57 percent of workers today share that sentiment about the new year. Additionally, slightly fewer workers expect a holiday bonus this year (23 percent) than last year (24 percent).

Looking Back at the Hudson Employment Index in 2007

In 2007, the Hudson Employment Index(SM) set a number of records. The Index's all-time record high was recorded in March 2007 when it peaked at 109. At that time, 44 percent of workers said their finances were improving and 32 percent believed their company had plans to add headcount. Just eight months later, the Index hit a record low of 91.9 in November. In that timeframe, the number of workers optimistic about their finances fell 10 points to 34 percent. Just one-quarter of employees expected hiring in November, which is also a record low.

The average Index reading through November 2007 is 102.8, nearly a point lower than the 2006 average of 103.7. While workers expected less job growth this year than in 2006, they anticipated fewer layoffs and were less concerned about job security. The Index had an average reading of 101.5 in 2005 and 106.2 in 2004.

                                          All      All      All      All
                                        Workers  Workers  Workers  Workers
                                          2007     2006     2005     2004
                                        -------  -------  -------  -------
Average Hudson Employment Index           102.8    103.7    101.5    106.2
                                        -------  -------  -------  -------
Average Number of Workers Expecting
 Hiring                                      30%      31%      31%      32%
                                        -------  -------  -------  -------
Average Number of Workers Expecting
 Layoffs                                     15%      16%      17%      18%
                                        -------  -------  -------  -------
Average Number of Workers Concerned
 About Job Loss                              18%      19%      21%      18%
                                        -------  -------  -------  -------

About the Survey

This Hudson survey is based on a national poll of 2,000 U.S. workers conducted November 30 - December 1, 2007 and was compiled by Rasmussen Reports, LLC, an independent research firm ( The margin of sampling error for a survey based on this number of interviews is approximately +/-2.2 percent with a 95 percent level of confidence. A more detailed data report is available at

Hudson, a leading provider of permanent recruitment, contract professionals and talent management services worldwide, also publishes the Hudson Employment Index(SM), a monthly measure of the U.S. work force's confidence in the employment market. The next Hudson Employment Index will be released on January 2.


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

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.

Contact Information

  • Contact:
    Sarah Kafenstok
    (312) 795-4202
    Email Contact

    Anshula Ahluwalia
    Ogilvy Public Relations for Hudson
    (312) 397-6074
    Email Contact