Employee Sentiment
News from Glassdoor's recent Employment Confidence Survey is encouraging. The company polled adults across the country from June 12 to 14, and the results were generally positive.

Not feeling elated just yet? That's normal: It takes time for things to filter through our economic machine and show results on the bottom line.

In other words, the optimism could be a bellwether for better times in our near future.

RehiringJob Security, More Hiring, But No Raises

By far the most encouraging piece of news coming out of the report deals with the ranks of the unemployed.

After bottoming out last summer, more people believe they will find a job that matches their experience and compensation level within the next six months than at any point since the Great Recession.

Though feeling like there's a good chance you'll find a job and actually getting that job are two different things, it's encouraging to see such a marked improvement over the last year. Time will tell if that optimism is warranted.

The report also revealed that fewer employees are currently expecting a raise in the next six months. That said, there is a major shift taking place that could still increase spending: job security.

Job securityWhile employees seem to have found a baseline (with 19% saying they are concerned with being laid off in the next six months), they seem much more confident than before that their peers' jobs are safer than they were two years ago.

Instead of having a delayed effect on the economy, this kind of sentiment can yield immediate results. People who feel more confident that they and their peers have job security are more likely to devote capital to major (and minor) purchases. That's not the case when someone isn't sure where their next paycheck will come from. Such spending filters through the system and eventually improves the employment situation.

Market Ramifications

While there's no question that more working people would translate into more economic activity, a recent graph from the St. Louis Federal Reserve shows just the type of effect it could have on the stock market.


Source: Business Insider.


Joe Weisenthal of Business Insider sees this as an all-important metric to investors. "It's a reminder of what's driving this market. Fundamentals. There haven't been many periods where the two lines separated much, and where they did, it was always the market (blue line) that caught back up with the fundamentals."

Jobs numbers have certainly been disappointing over the past few months, but the situation is improving -- albeit at a painfully slow pace. With the market (blue line) trailing initial jobless claims, that could mean good news for investors over the coming months.

And, as we've seen before, the performance of the stock market in the months leading up to a presidential election correlates strongly with whether the incumbent party wins. In fact, it has been an accurate predictor 90% of the time.

Time will tell if Glassdoor's report turns out to be a bellwether or just another data point. But its undoubtedly good news that Americans are feeling safer in their jobs today than they were two years ago.


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13 Comments

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jdykbpl45

Like cool hand Luke said. Get your mind right. Yes boss.

July 17 2012 at 7:34 PM Report abuse +1 rate up rate down Reply
vondeck

Where?

July 16 2012 at 7:30 AM Report abuse +1 rate up rate down Reply
cpo1514

Are the folks that feel better the 51% whose job is "bridge cards, Obama phones, free cars, shuttler service" ? Or is it the illegals ? the increase in Welfare under this Occupant could be that these folks think this is a job????

July 15 2012 at 7:37 AM Report abuse +3 rate up rate down Reply
ha6ai

AOL/HuffPuff is the most blatant LIAR.

This is ridiculous DISHONEST Obama PROPAGANDA.

I just received a "survey" from AOL in which I responded that THIS is the kind of GARBAGE that AOL/HuffPuff should stop spewing - this kind of dishonest leftist Obama propaganda is truly disgusting and insulting to its readers.

July 15 2012 at 12:28 AM Report abuse +5 rate up rate down Reply
ha6ai

Shouldn't this phony story be disclosed as "these lies were approved by Barak Hussein Obama"?

or,

"this story brought to you by the Liar-in-Chief"?

July 14 2012 at 3:21 AM Report abuse +5 rate up rate down Reply
mccglf

People might feel better than they did in 1935 too, but that doesn't say much. This is a case of liars figuring. Two years ago was immediately after the crash in in a maelstrom of layoffs. The patient has stopped hemmoraging but he is not improving.

July 13 2012 at 5:08 PM Report abuse +3 rate up rate down Reply
Bob Senko

This is in direct contrast to the consumer sentiment number that just came out today. It went down again and below consensus for the third month in a row.

July 13 2012 at 3:53 PM Report abuse +3 rate up rate down Reply
grstewartcpa

It means: Everyone just got use to being poor and out of a job.

July 13 2012 at 3:11 PM Report abuse +3 rate up rate down Reply
Linda

"You're going to feel better soon. Everything is fine. Eat your crumbs and move along now."

July 13 2012 at 1:56 PM Report abuse +4 rate up rate down Reply
jkalish888

http://finance.yahoo.com/news/higher-us-unemployment-pimcos-gross-200305940.html

July 13 2012 at 1:09 PM Report abuse +2 rate up rate down Reply