Employee sentiment fell in July

The Employee Motivation and Commitment Index dropped five points from its record high to 133 in July. The index still sits at 22 percent above its two-year average of 109, and several sectors hit new highs.

Five of the index’s 10 sectors hit record highs in July. Information jumped 47 points to 178. Construction and related trades rose 23 points to 133. Health care and social assistance added 12 points to 158. Professional, scientific, and technical services, a sector that includes legal, accounting, architectural, and engineering firms, was up eight points to 139, its second consecutive record month. Finance and insurance, which has been on the upswing since April, reached a new high of 121, its third consecutive record.

Retail/wholesale trade was the only sector that showed a substantial decline, falling 44 points to 101, its lowest level since November 2023.

“Retail workers, who tend to be lower paid, could be feeling the crunch of spendable cash. On average, 64 percent of respondents to our monthly survey say they’re living paycheck to paycheck. This number sits at 71 percent in July for retail workers,” said Dr. Mary Hayes, director of People and Performance Research at ADP Research.

The Employee Motivation and Commitment Index tracks how people think and feel about their jobs and employers. We collect 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 Aug. 20. For EMC Index historical data, visit the ADP Research Data Lab.