September 05, 2007 06:00 ET
Hudson Employment Index Tumbles in August
Worker Confidence Plunges to Lowest Reading in Nearly Two Years
NEW YORK, NY--(Marketwire - September 5, 2007) - The Hudson Employment Index(SM) recorded its
largest one-month drop in August, falling 6.6 points to 99.2. Nearly all
factors contributing to the Index revealed lowered optimism. The latest
reading is the weakest since September 2005 and 3.7 points lower than last
Hudson (NASDAQ: HHGP), a leading provider of permanent recruitment,
contract professionals and talent management services worldwide, publishes
the Hudson Employment Index, a monthly measure of U.S. worker confidence in
the employment market.
Workers Fearful for their Finances
August's business news took a heavy toll on workers' perceptions of their
finances. There was a six-point drop (from 43 to 37 percent) in the number
of workers who said their financial situation was improving. The last time
the U.S. work force was this pessimistic regarding the direction of their
finances was in October 2005, when the country was recovering from the
devastation of Hurricane Katrina.
At the same time, the number of workers who rated their finances favorably
fell three points to 43 percent. There was also a one-point increase among
employees who indicated their finances were getting worse.
Layoffs Edge Up
After holding at or below 15 percent for a year, the number of workers
forecasting layoffs at their companies hit 16 percent in August. This
figure was just 14 percent the previous month. There was also an increase
in the number of employed individuals concerned about losing their job,
from 17 percent in July to 18 percent in August.
"With news of dramatic declines in stock averages and continued downturns
in the housing and mortgage markets, August proved to be an incredibly
tough month on workers' psyches," said Robert Morgan, president of Talent
Solutions, Hudson. "Though the vast majority of workers are not yet
affected by these events, August's Hudson Employment Index revealed a
pervasive sense of nervousness about the job market and the potential
impact on income."
Worry Found at All Levels
Managers were also less confident regarding the job market in August. Fewer
said that their companies had plans to hire and more were worried about job
security this month than in July. They were significantly more concerned
about their personal finances as well.
All Workers All Workers All Workers All Managers
August 2007 July 2007 August 2006 August 2007
Employment Index 99.2 105.8 102.9 111.2
Expected Layoffs 16% 14% 15% 15%
Job Security 18% 17% 19% 17%
Finances Improving 37% 43% 40% 46%
*A more detailed data report is available at www.hudson-index.com.
Results are not seasonally adjusted. Next month's Hudson Employment Index
will be released on October 3.
The Hudson Employment Index
The Hudson Employment Index (www.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
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
9,092 working Americans during the month of August. 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.
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.