SOURCE: Hudson

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 August's Index.

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
Hudson
 Employment Index      99.2          105.8         102.9         111.2
Expected Layoffs        16%            14%           15%           15%
Worried About
 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 (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 9,092 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

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.

Contact Information

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

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