The Worker Confidence Index (WCI) increased to its highest level since study inception, up 4.6 points to 104.5 in the fourth quarter and up 10.3 points for the year. All components of the WCI were up in 2016, with job confidence, likelihood of a raise and trust in leadership all up more than 10 points.
The consistent increase in the WCI throughout the year suggests optimism about employee’s faith in their employment situation, and job loss confidence throughout the year corresponds with the U.S. unemployment rate drop to 4.7 percent.
In many ways, 2016 was tumultuous. The Dow closed out its best year since 2013, up 13.4 percent for the year to end at 19,762.60. But the result of the presidential election was both surprising and polarizing, and traditionally the market doesn’t like surprises. How the election results will impact 2017 remains uncertain, though as of mid-February, The Dow Jones Industrial Average is up over 20,400.