Job postings are down 15% over the past year, plummeting 31% in finance and 44% in software development roles

Job postings are down 15% over the past year, plummeting 31% in finance and 44% in software development roles, per Indeed.


American workers are feeling less optimistic about the future of their employers than they have in almost ten years, signaling a challenging landscape ahead as layoffs increase and job opportunities diminish.

According to data from Glassdoor, the proportion of workers expressing a positive outlook for their organization over the next six months dropped to 45.6% in January. This marks a decline of nearly 2 percentage points from the previous month and represents the lowest level since tracking began in 2016.

Similarly, the ADP Research Institute's index, which measures workers' sentiments toward their jobs and employers, saw its first decrease in five months at the start of the year.

"Employee confidence is starting the year on shaky ground," noted Daniel Zhao, Glassdoor's lead economist. "As hiring slows down, mid-level employees are feeling the pressure to meet employer expectations with reduced budgets and staff."

Several factors are contributing to workers' concerns. Layoffs are on the rise across various sectors, with major companies like Microsoft Corp., Citigroup Inc., Levi Strauss & Co., Salesforce Inc., and Macy's Inc. announcing job cuts this month alone.

Job postings have decreased by 15% over the past year, with significant declines in finance (31%) and software development (44%) roles, according to job site Indeed.

Moreover, wage growth has slowed, and annual bonuses are expected to be smaller this year. Despite research indicating that S&P 500 firms did not experience improved financial performance after implementing return-to-office mandates, some employers are still insisting on bringing staff back to the office and even threatening punitive actions.

These factors have contributed to a decline in the quits rate, which is at its lowest level in over three years. This suggests that Americans are less confident in their ability to find other jobs in the current market or secure new positions with better compensation.

However, while workers may be feeling apprehensive about their individual employment situations, broader indicators of job sentiment have shown improvement in recent months. This highlights a disconnect between workers' personal outlooks and the overall state of the US economy, which saw robust growth last quarter, surpassing expectations.

Despite ongoing uncertainties, the labor market has demonstrated resilience, maintaining historically low levels of unemployment. Nonetheless, workers remain wary, as evidenced by the increase in Glassdoor employee reviews mentioning layoffs, which have risen by 27% compared to the same period last year.