Spherion Employee Confidence Index Declines

Spherion Employee Confidence Index Declines Two Points in JuneMacroeconomic Confidence Drops to Lowest Level Since November 2005-- Nearly Eight in 10 Workers Feel Their Jobs Are Secure-- Fewer Workers Confident in Their Ability to Find A New Job

Following three months of tepid job creation, U.S. workers were less confident in the economy and their ability to find a job in June. As a result, the Spherion(R) Employee Confidence Index dropped two points to 56.7, a level that is 1.1 points lower than in June 2005. The recent survey of 2,959 employed adults in the U.S., conducted by Harris Interactive(R) on behalf of Spherion Corporation (NYSE:SFN), shows that only 19 percent of workers believe the economy is strengthening (a decrease of four percentage points from May) and 24 percent believe more jobs are available, down from 27 percent in May.

Fewer workers were optimistic about their personal employment situation in June as well. Fifty-six percent of workers reported confidence in their ability to find a new job, a drop of four percentage points from May. The percentage of workers confident in their employers' future was virtually unchanged at 65 percent (a drop of one percentage point from May).

"The latest Employment Report indicates a sizeable decline in worker confidence and it's not surprising given the effect of high energy prices this summer and the tepid job creation over the past few months," said Roy Krause, president and chief executive officer of Spherion. "But the economic picture is not as dreary as some may believe. The upward revision to first quarter GDP and increased job creation in June are signs that the economy has been and continues to be in a growth mode. This growth has resulted in greater corporate spending and a steady demand for skilled workers. Given the current situation, we see further job growth and economic expansion ahead.

"The drop in overall confidence did not affect workers' outlook on their job security and had little impact on their plans to change jobs, however. The survey indicates that 78 percent of workers remain confident in their job security, a number that has shown little change in the past 12 months. In addition, 36 percent of workers said they were likely to change jobs in the next year, down two percentage points from May."One of the most telling signs from this report is that workers' job security remains very high. A high level of job security can be looked at as a sign of stability in corporate America and the economy in general," he said.

Results from the June Spherion Employment Report:Employee Confidence Index:Workers' Confidence Decreases in June The Employee Confidence Index was 56.7 in June, falling two points from May. The Index, which measures workers' confidence in their personal employment situation and the macroeconomic environment, may have decreased primarily because more workers reported doubt in the economy and their ability to find a new job. The Index is 1.1 points lower than the level recorded in June 2005.Macroeconomic Confidence Index Decreases: The Macroeconomic Confidence Index decreased to 40.3 in June, a 1.8-point drop from May, as more workers were pessimistic about the number of jobs available and the strength of the economy.

The Index level is 2.3 points lower than a year ago. Specific findings from the Macroeconomic Confidence Index include:24 percent of U.S. adult workers believe that more jobs are available, down three percentage points from May.

-- Only 19 percent of U.S. adult workers believe the economy is getting stronger, compared to 23 percent in May.

--Personal Confidence Index Drops: The Personal Confidence Index was 73.2 in June, falling 2.1 points from May. A drop in the number of workers reporting confidence in their ability to find a job fueled this decline. The Index level is 0.1 points higher than in June 2005. Specific findings from the Personal Confidence Index include:65 percent of U.S. adult workers feel confident in the future of their employer, compared to 66 percent in May.56 percent of U.S. adult workers have confidence in their own ability to find a new job, down four percentage points from May.

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