The ADP Research Institute Employee Motivation and Commitment Index began the new year with its first decline in five months, falling three points from December to 109 in January.
Real estate fared especially poorly, falling by more than a third in January and continuing a downward trend that began in August.
“This softening is understandable considering the effect of Federal Reserve rate hikes on the housing market,” said Dr. Mary Hayes, director of People and Performance Research at ADPRI. “This will be a sector to watch closely as the Fed weighs rate cuts in 2024.”
Manufacturing, by contrast, had a strong month. The sector recovered from a fourth-quarter slump to gain 42 points.
This month, ADPRI revised the Employee Sentiment Survey to align its sector demographics with the North American Industry Classification System. Some sectors previously displayed in the EMC Index have been regrouped into NAICS categories, and new sectors have been added. These new categories will be displayed later this year as more data is collected and trend lines are established.
The Employee Motivation and Commitment Index tracks how people think and feel about their jobs and employers. By providing a real-time measure of the state of worker allegiance, it can tell us whether workers are flourishing in their jobs or detaching.
The ADP Research Institute publishes the EMC Index on the third Tuesday of every month. The next release will be Feb 20. For EMC Index historical data, visit ADPRI’s Data Lab.