Despite historically low official unemployment rates, a growing sense of unease looms over the U.S. workforce. Glassdoor’s latest Employee Confidence Index reveals that just 44.4% of workers feel optimistic about their company’s prospects in the next six months—the lowest level since the index began in 2016. This sharp decline reflects rising economic uncertainty, exacerbated by trade wars, high-profile layoffs, and employees being stretched thinner than ever.
“Workers are increasingly nervous about the economy’s direction and its impact on their jobs,” said Glassdoor Lead Economist Daniel Zhao. “Even those who’ve avoided layoffs are struggling with burnout, unrealistic expectations, and dwindling resources.”
The downturn is particularly stark in government and public administration, where confidence dropped most sharply, followed by aerospace and defense. Widely publicized government layoffs have intensified fears, but the psychological toll extends beyond job insecurity. Employees report being overworked and under-resourced, with many Glassdoor reviews highlighting frustration over being asked to “do more with less.”
The contrast to the post-pandemic labor market’s “Great Resignation” and “Great Reshuffle” era—marked by record wage growth, signing bonuses, and worker leverage—has deepened dissatisfaction. “Workers remember when employers competed for their talent,” Zhao noted. “Now, the shift in power back to employers feels like a loss, fueling resentment and disengagement.”
A separate Glassdoor survey underscores the crisis: Two-thirds of workers feel “stuck” in their current roles, trapped by economic anxiety and a lack of alternatives. This widespread discontent signals not just a jobs issue, but a broader crisis of morale.
“People are upset about their work situations, but they don’t see a way out,” Zhao said. “That’s a recipe for disengagement—and a warning sign for employers.”
Employee Anxiety Mounts Amid Low Unemployment: A Crisis of Confidence
Despite a persistently low unemployment rate, a stark shift is unfolding in the labor market: workers are grappling with heightened fears of layoffs, doubts about their employers’ financial stability, and dwindling optimism about securing new opportunities. This growing unease, driven by economic uncertainty and policy shifts, is reshaping sentiment even as headline job numbers remain stable.
**Why It Matters**
Surging inflation during the Biden administration eroded earlier optimism, but recent concerns about labor market fragility—exacerbated by President Trump’s aggressive policies, including federal spending cuts—are now deepening pessimism. The result is a stark contrast to the post-pandemic era of worker leverage and rapid job-switching.
**Record-Low Confidence**
Employee confidence in employers’ business prospects hit a historic low in February, according to Glassdoor’s latest data. The government and public administration sector saw the sharpest decline, with confidence dropping nearly 5 percentage points amid upheaval caused by the Department of Government Efficiency’s restructuring efforts. Aerospace and defense followed, with a 3.5% dip, partly tied to anticipated fallout from federal budget cuts.
**Beyond Layoff Fears**
“It’s not just about job losses—it’s the lingering uncertainty for those who remain,” explained Glassdoor economist Daniel Zhao. The erosion of confidence spans industries: only 10 of 24 sectors tracked saw improvements in February. Even healthcare, a recent bright spot for job growth, faces mixed sentiment.
**A Nostalgic Contrast**
The current malaise contrasts sharply with early 2022 when worker confidence peaked amid labor shortages and high demand. “There’s a sense of loss compared to what might have been,” Zhao noted, pointing to nostalgia for a tighter labor market.
**Consumer Sentiment Echoes Anxiety**
Broader economic fears are compounding workplace stress. The New York Fed’s survey revealed that Americans now anticipate tougher times ahead, with nearly 40% expecting higher unemployment within a year—a 5-point jump since January. Concerns about debt repayment have also reached their highest level since the pandemic’s early months.
**Shifting Risks**
Mentions of layoffs in Glassdoor reviews rose 5% year-over-year, while references to inflation fell 13%, signaling a pivot in worker priorities. “The focus has shifted from inflation to job security,” Zhao said, underscoring how economic risks now dominate employee concerns.
As policy-driven uncertainty reshapes the economic landscape, the disconnect between low unemployment and soaring worker anxiety highlights a fragile reality: stability in jobs hasn’t translated to confidence in the future.