Layoffs Spark Record-Low Employee Confidence as Trump Approval Rating Drops

Employee confidence in their employers and future prospects has hit a record low, according to Glassdoor's latest Employee Confidence Index. This is the third record-low reading of 2026 as layoffs continue across various industries. Hiring has remained sluggish in many white-collar fields, contributing to the declining confidence.

President Donald Trump's approval ratings have also hit some of the weakest levels of either of his terms, raising concerns about political challenges heading into the 2026 midterm elections. Economic dissatisfaction could be a major factor driving this voter dissatisfaction, with rising costs and economic concerns being key factors.

Jan Hendrik von Ahlen, a managing director and career expert at JobLeads, noted that job market turbulence is causing current employees to either already be affected by layoffs or witness their colleagues being laid off. The process of layoffs is often abrupt and provides minimal severance, if any.

Worker sentiment is viewed as a leading indicator of labor market conditions. When employees lose confidence in their employers, they may reduce spending, delay major purchases, and become less likely to change jobs or worry about potential layoffs. This can negatively impact the overall economy.

The White House is facing mounting political pressure due to the declining employee confidence and Trump's low approval rating. A Wall Street Journal survey found the president's approval rating at 37 percent, the lowest pre-midterm reading in the newspaper's polling history dating back to 1990.

Daniel Zhao, Glassdoor's Chief Economist, explained that the job market is extremely turbulent, with workers feeling frozen out of opportunities and anxious about AI developments, policy uncertainty, and resurgent inflation. These factors are contributing to growing anxiety among workers.

Glassdoor data shows employee confidence falling to 42.9 percent from 44.5 percent in the September report. Several factors, such as ongoing layoffs in tech and media industries, slower hiring rates, and the impact of AI, are driving rising worker anxiety.