U.S. Employee Confidence Hits Historic Low Amid 47% Layoff Surge

The latest report from Glassdoor indicates that the U.S. labor market is facing a critical juncture. The employee confidence index for May plummeted to a historic low of 44.1%, reflecting the proportion of employees who hold an optimistic outlook on the economic prospects for the next six months.

Survey respondents attributed the decline in confidence to uncertainties surrounding tariff policies and a wave of layoffs. The platform noted a 9% surge in discussions related to layoffs.

Data from Challenger, Gray & Christmas, a reemployment services firm, revealed that in May 2025, U.S. employers announced 93,816 layoffs, marking a 47% increase from the 63,816 layoffs reported in the same period in 2024.

Concurrently, the U.S. Bureau of Labor Statistics reported that 139,000 new jobs were added in May, slightly below the 147,000 jobs added in April.

Junior employees emerged as the most pessimistic group, with their confidence index hitting a new low of 43.4% since 2016.

This decline in confidence among junior employees can be attributed to several factors. The uncertainty surrounding tariff policies has created an atmosphere of instability, making it difficult for employees to predict future economic conditions. Additionally, the surge in layoffs has heightened job insecurity, further dampening morale.

The increase in layoffs, as reported by Challenger, Gray & Christmas, underscores the severity of the situation. The 47% rise in layoffs from the previous year highlights the significant impact of economic uncertainties on employment stability.

Despite the slight decrease in new job additions, the overall trend suggests a challenging labor market. The 139,000 new jobs added in May, while lower than the previous month, still indicate some level of economic activity. However, the decline in the employee confidence index suggests that the overall sentiment remains bleak.

The situation is particularly dire for junior employees, who are often the first to be affected by economic downturns. The 43.4% confidence index for this group reflects their heightened concerns about job security and future prospects. This pessimism could have broader implications for the labor market, as junior employees are a crucial segment of the workforce.

In summary, the current state of the U.S. labor market is characterized by declining employee confidence, particularly among junior employees. The uncertainties surrounding tariff policies and the surge in layoffs have contributed to a sense of instability and pessimism. While there are still new job additions, the overall sentiment remains negative, indicating a challenging period ahead for the labor market.