Employee confidence in the U.S. has sunk to its lowest point ever, according to a new report from Glassdoor released in March 2025. The company’s Employee Confidence Index, which tracks how workers feel about their employer’s future, dropped to a dismal 44.4% in February—the weakest reading since Glassdoor started measuring it in 2016. With layoffs spiking and economic uncertainty on the rise, it’s no wonder workers are feeling the squeeze.
The index, based on feedback from thousands of employees about their company’s six-month outlook, shows an 11.2% plunge from its high in March 2022. Glassdoor’s lead economist, Daniel Zhao, points to a wave of job cuts as a major culprit. In February alone, mentions of layoffs in Glassdoor reviews spiked to levels not seen since the height of the pandemic in July 2020, up nearly 5% from a year ago. “Employees want to jump ship, but the job market’s too shaky to risk it,” Zhao noted. “That trapped feeling is dragging down morale and could hit productivity hard.”
Industries like aerospace, defense, and nonprofits—often tied to government funding—saw confidence erode by 6.8% and 4%, respectively, hinting at worries over budget cuts. Mid-level workers took the biggest hit, with their optimism dropping 1.7% since last year, likely due to targeted layoffs thinning out management ranks. Entry-level and senior employees aren’t faring much better, with beginners hitting their own record low in confidence.
Zhao suggests that clear communication from bosses could help. “Even in tough times, being upfront with staff builds trust,” he said. But for now, the mood is grim. With economic jitters piling up—think inflation worries and policy shifts under a new administration—workers are bracing for a bumpy ride. If this keeps up, businesses might feel the fallout in disengaged teams and sluggish output.