Gallup finds that American workers' job market optimism drops to 28% by 2025

The 'Big Money Show' panel reacts to new data showing that Gen Z employment has fallen while older workers are staying in the workforce longer.
A new report from Gallup finds that US workers are less optimistic about this work situation and their level of engagement with their current activities remains relatively low.
Gallup released its 2026 State of the Global Workplace report on Wednesday, which revealed that although 51% of the world's workers think it's a good time to get help. quality workAttitudes among US workers dropped to 28% in the fourth quarter of 2025.
That number represents a significant drop from 46% in the fourth quarter of 2024, continuing the growing number of declines from the 70% reading in the second quarter of 2022.
“People with degrees, they have a much harder time getting a job,” Jim Harter, Gallup's senior scientist for workplace management and well-being, told FOX Business. “So there's kind of an interesting dynamic going on right now where unemployment is very low, very low, but hiring is not happening.”
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Gallup's report showed a decline in engagement among American workers and low levels of engagement. (Robyn Beck/AFP via Getty Images)
“The work environment, in terms of people's freedom, they feel stuck where they are. Part of the solution to that is that organizations need to do better at driving strong performance management systems and good communication between managers and employees,” Harter said.
When workers feel stuck and like they don't have a choice about finding another, better job, Harter said, “their relationships will start to decline, and functional isolation will start to rise when people lack choice because they're stuck in jobs they don't want.”
Employees who say they are looking for a new job report not getting a response even after applying for multiple jobs, Gallup found.
“We're seeing people apply for jobs, but they're not getting a response. There's not a lot going out there from a hiring standpoint right now,” Harter said. “It's not really a good time right now at the end of the recruitment and, again, unemployment is very lowso people are in work – but they are jobs that they don't see as quality jobs.”
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Workers eager to find new jobs have struggled to find answers, Harter said. (Joe Raedle/Getty Images)
Harter noted that among respondents who said they had the ability to multitask, their perception of the work environment was more positive.
“I think it has a big impact on the development of skills related to AI that can be a big part of people being able to find jobs in the future,” he added.
The report's findings also showed what Gallup called the “Grand Door” situations where people are actively looking for a job or looking for an opening while reporting low levels of satisfaction with their current employer.
“Although the employees have little choice about leaving the employer and going to another place, there is a change in mentality which means that they are not bringing their best to help the organization to develop,” said Harter.
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The most successful organizations have a high level of engagement among employees, notes Harter. (Joe Raedle/Getty Images)
The report also found that the three-year number of employed workers dropped to 31%, 52% of the workforce and 17% unemployed. At 31%, the engagement rate among US workers is at its lowest level since 2014, while the share of actively disengaged workers at 17% was at 2014 levels.
In contrast, Harter said top organizations have 70% or more of their employees working with them, as well married managers to an even greater extent.
“If you look closely at the organizations that are doing admirable work right now, they are finding ways to do it,” he said. “They actually grow their managers, they get people in the right management roles – that helps when you're making the organization high-level and people can control their time as managers. They help people see how their work fits into the larger purpose of the organization.”
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“What we are talking about here is very solvable, but it is an uphill battle right now where leaders must be very serious about what they are doing with their employees especially with their managers and how they are preparing to train people regularly and help people feel like they are part of what the whole organization is trying to do,” added Harter.



