Washington, DC, Mar. 6--Employee confidence fell to an all time low of 52 in February, as employees expressed increased concerns about the state of the nation's economy, according to the Gallup/UBS Employee Outlook Index, a joint effort of The Gallup Organization and UBS.
The Employee Outlook Index, established in April 2002 with an initial baseline of 72, fell eight points in February, down from 60 points in January. February's survey also revealed that employees are increasingly concerned about future company conditions, which fell 11 points to a new low of 50 points, emphasizing a growing anxiety about the uncertain future of the economy.
Importantly, when asked to theoretically choose between a 10% across the board layoff and a 10% across the board cut in pay, if their company were faced with a serious financial problem, nearly three quarters, 71%, overwhelmingly opted for the 10% cut in pay. The layoff option was chosen by 28% of respondents.
In commenting on this month's findings, Gallup chief economist Dr. Dennis Jacobe said, "The February index decline is consistent with other leading economic indicators. The continued threat of war, increased layoffs, fewer job opportunities, and the beginning of one of the most uncertain economic years all contributed to battered confidence in the nation's economy."
