Employee sentiment fell sharply in August

The Employee Motivation and Commitment Index fell 21 points in August, the largest month-over-month decline in data going back to January 2022. Although the August reading of 112 is a significant drop from the record high of 138, set in June, the index remains above its two-year average of 109.

Four sectors recorded record month-over-month declines. Information fell 94 points to 84, transportation and warehousing fell 69 points to 99, and construction lost 43 points, dropping to 90.

Educational services fell 35 points to 111, repeating a decline in sentiment we saw in August 2023 as teachers and other professionals prepared to return to the classroom.

Retail/wholesale trade was the only sector to show improvement, rising 18 points to 119 and regaining some of the ground it lost in July.

“The large drop this month follows a weaker-than-expected jobs report and the Federal Reserve holding steady on interest rates,” said Dr. Mary Hayes, director of People and Performance Research at ADP Research. “And with summer ending, education saw a large drop, like it did a year ago. Hiring connected to the new school year might bring uncertainty for workers in this sector.”

The Employee Motivation and Commitment Index tracks how people think and feel about their jobs and employers. ADP Research collects data each month using a panel survey to gather a stratified, random sample of 2,500 U.S. workers. By providing a real-time measure of the state of worker allegiance, this index can tell us whether people are flourishing in their jobs or detaching.

ADP Research publishes the EMC Index on the third Tuesday of every month. The next release will be Sep. 17. For EMC Index historical data, visit the ADP Research Data Lab.