The Randstad Manufacturing & Logistics Employee Confidence Index, a measure of overall confidence among U.S. workers in this sector, hit an all-time high this quarter rising from 50.5 to 56.0 – a level not reached since Randstad began tracking the index in 2005. The quarterly survey, conducted by Harris Poll among 161 manufacturing and logistics workers on behalf of Randstad, also found workers' sense of economic strength, availability of jobs and their ability to find a new job all rose this quarter.
In addition, when it comes to job security, the majority (58%) of manufacturing and logistics workers feel it is not likely they will lose their jobs in the next 12 months. However, nearly four-in-10 (39%) workers say it is likely they will seek out new employment in the next year, increasing six points from last quarter.
"This unmatched level of confidence in both the overall economy and in their own personal situation is reflective of a stronger year of sales and projection of hiring activity in the manufacturing industry," said Traci Fiatte, Group President of Randstad Staffing. "We're seeing a growing number of manufacturers bringing more work onshore rather than cutting production workers and outsourcing work overseas, which is necessitating the need to hire more workers."
In fact, in a survey by the Institute for Supply Management (ISM), manufacturing members say they expect to increase staffing by an average of 2.4 percent in 2014, with revenues projected to rise by an average of 4.6 percent. In addition, 44 percent of manufacturing ISM members see better conditions ahead. Yet, manufacturers continue to worry about their ability to hire. A recent report found 55 percent of manufacturers say they have or will have a shortage of people with the right skills in research and development, and half say they face a similar shortage in marketing.
"At Randstad, we see an uptick in the demand for skilled manufacturing and logistics talent, which is complimented by the fact that the economy added 16,000 new jobs in the sector in June," continued Fiatte. "The job market for our industrial engineers, first-line supervisors of production and sales representative candidates is looking very positive, with many having the choice between multiple job offers. The expanding job market for manufacturing and logistics workers may be one reason our survey found nearly four out of every 10 of these workers say it is likely they will look for a new job in the next 12 months –increasing from 33 percent last quarter."
Q2 Survey Highlights:
Manufacturing and Logistics Workers' Confidence in the Economy Rises
More than one-third (34%) of manufacturing and logistics workers believe the economy is getting stronger, an eight percentage point increase from 26 percent in the previous quarter.
Perception of Job Availability Improves this Quarter
Manufacturing and logistics workers who feel there are fewer jobs available declined 12 percentage points from 50 percent last quarter to 38 percent in the second quarter. Also, the number of manufacturing and logistics workers who believe there are more jobs available rose this quarter, climbing five percentage points to 30 percent, which is up from 21 percent in Q4 2014.
Job Security Remains High
The majority (58%) of manufacturing workers feel it is unlikely they will lose their jobs.
Four Out of Every 10 Workers Likely to Job Hunt
Nearly four-in-10 (39%) manufacturing and logistics workers said they are likely to look for a new job in the next 12 months. Additionally, 49 percent of workers feel confident in their ability to find new employment.
