Employee confidence in the workplace has dropped to its lowest level on record, with fewer than half of workers expressing optimism about their company’s future, according to new data from Glassdoor.
The Glassdoor Employee Confidence Index found that 44.1 per cent of employees reported a positive six-month business outlook in May 2025, down from 45.8 per cent in April. The figure represents a new record low, breaking the previous mark set in February 2025.
Economic uncertainty and mounting layoff fears are creating widespread anxiety among workers, driving confidence levels steadily downward, the report found.
Layoff fears surge across industries
Mentions of layoffs in employee reviews on Glassdoor jumped nine per cent in May and remain 18 per cent higher than the same period last year. The increase comes as layoff fears continue to rise after leveling off in 2024.
Discussions about economic uncertainty in workplace reviews declined slightly by two per cent in May but remain 63 per cent higher year-over-year. References to the broader economy in employee reviews surged 17 per cent in May and are up 18 per cent compared to last year.
“Rising economic headwinds are creating broad anxiety that overrides employees’ feelings about their employer specifically,” said Daniel Zhao, lead economist at Glassdoor.
Government sector confidence plummets
The steepest decline in employee confidence has occurred in government and public administration, where only 34.5 per cent of workers maintain a positive outlook. The sector has seen confidence drop by 14.5 percentage points since the November 2024 presidential election, falling from 49 per cent to just over one in three employees.
Manufacturing showed a slight uptick in confidence, rising 0.2 percentage points, potentially due to some tariff relief in May that eased worker concerns. However, confidence in the sector remains 2.8 percentage points below last year’s levels.
Construction, repair and maintenance services saw confidence improve by 1.1 percentage points, though this may reflect recovery from an unusually cold winter. Transportation and logistics confidence fell 2.6 percentage points as business from tariff-related stockpiling began to fade.
Entry-level workers hit hardest
Entry-level employees experienced the sharpest drop in confidence, with their outlook falling to 43.4 per cent in May from 44.1 per cent in April. This marks a record low for entry-level worker confidence, narrowly surpassing the previous low set in March.
Mid-level and senior employees saw slight improvements in May, though both groups have experienced declines of 4.5 and 3 percentage points respectively over the past year.
Industry breakdown shows mixed results
Several industries bucked the overall downward trend. Real estate workers showed the highest confidence at 58.7 per cent, followed by human resources and staffing at 55.1 per cent, despite a 1.7 percentage point monthly decline.
The restaurant and food service sector recorded the lowest confidence at 35 per cent, down 1.1 percentage points from April. Arts, entertainment and recreation workers also showed low confidence at 38.7 per cent.
Financial services and insurance sectors demonstrated relative stability, with confidence levels of 54 per cent and 56.8 per cent respectively.
The Glassdoor Employee Confidence Index tracks employee ratings of their employers’ six-month business outlook, collecting tens of thousands of responses monthly. The data is weighted to reflect a nationally representative mix of industries and employee levels.
