Employees appear more likely to stay in their jobs during the next six months, which continues a trend from the beginning of 2025, according to a July 24 report based on Eagle Hill Consulting’s Employee Retention Index.
The index increased slightly during the second quarter, inching up 0.4 points to 102.9. Notably, worker optimism about the job market dropped sharply, marking the steepest decline since 2023 and hitting a record low.
This “plunge is more than just a data point: it marks the first time this indicator has declined for two consecutive periods, now at its lowest point since we launched this index,” Melissa Jezior, president and CEO of Eagle Hill Consulting, said in a news release. “This significant drop is echoed across almost every demographic, with baby boomers experiencing the most significant fall, followed by men.”
Fewer job candidates are receiving multiple job offers or backing out after accepting a job offer, signaling signs of a softening labor market, according to a Gartner report. Even so, organizations are still struggling to attract talent as applicants become more selective and remain in their roles, Gartner researchers said.
Based on Eagle Hill’s Index data by age cohort, Generation Z workers appear to be least likely to leave their jobs in the next six months. For the second consecutive quarter, Gen Z has expressed stronger confidence in their organization’s future and more satisfaction with compensation.
At the same time, Gen Z workers aren’t necessarily more engaged, with their retention scores dropping more significantly than other groups and positive sentiment decreasing across all four indicators, particularly workplace culture.
“This convergence highlights that worker confidence in job opportunities is dwindling for nearly all U.S. workers as uncertainty looms around the broader economic outlook and job threats like AI and automation,” Jezior said. “Organizations, however, can leverage this drop in market confidence as a window of opportunity.”
While workers may be less inclined to leave their current roles, Jezior said, they may also be open to new position or additional training.
