Confidence on the rise as vaccine rollout continues

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As the economy reopens and more people get vaccinated – more than 20 million UK adults have received both doses of a vaccine – confidence among UK professionals is on the rise. The latest data from the LinkedIn Workforce Confidence Index shows the overall confidence score, measured on a scale between -100 and +100, is at 22, up five points since the beginning of the year. Financial confidence has risen relatively quickly, almost doubling since the start of the year (up to 14 from a score of 8). Professionals are also feeling positive about their ability to get or hold on to their job, with a score of 37 contributing to the higher overall confidence score.

Small businesses on the up?

Notably, people who work at small and medium-sized businesses have higher than average confidence levels and strikingly higher scores than those at the largest firms.

Confidence has risen rapidly over the quarter for those at smaller firms, over a period in which Covid restrictions were still in place but vaccines were rolling out quickly. The rise in confidence since January saw SMEs up by 10 points to a score of 31 by the end of April. In contrast, employees at the largest companies (over 10,000 staff) have seen confidence slightly fall since the start of the year, down two points to 23.

Across every criteria – job, financial and career confidence – those at companies with less than 200 employees were more confident than the UK average, with job confidence particularly high at a score of 49. Those at the largest firms saw financial confidence rise slightly over the period, though career and job confidence both fell.

Positive signs, but pandemic still a concern

Overall UK professionals have a positive outlook when it comes to their own abilities, with the majority (60%) saying their work experience and education made them feel more confident. This topped the list of factors boosting people’s confidence levels, with employer performance second.

The area of most concern is the availability of jobs (or lack thereof), with more than a third of UK professionals listing it as a factor impacting their confidence. The status of the pandemic is the second most common factor hitting confidence levels, listed by 33% of the UK population.

Perhaps unsurprisingly, given they are more likely to have been vaccinated, baby boomers are the least likely generation to say the pandemic is affecting their confidence – in fact, almost a quarter (24%) say the status of the pandemic is making them feel more confident. Millennials are most concerned regarding the pandemic, with 42% saying it’s making them feel less confident.

Younger generations – gen Z and millennials – are more optimistic than older groups about the opportunities to grow their skills and the prospects of their incomes increasing, with just under half of these professionals citing them as confidence boosters, likely due to them being at an earlier stage of their careers. And when it comes to experience and education, those in the early to mid-stages of their careers are most confident – 65% of gen X professionals and 62% of millennials give it as a factor making them feel optimistic. 

Notably, baby boomers are the least confident generation when it comes to their experience and education despite being the longest in the workforce, with just over half giving it as a factor boosting their confidence, perhaps indicating uncertainty about a changing jobs market.

Men and women’s differing concerns

The gender confidence gap still persists in the UK, but optimism for both men and women is rising after another quarter of data. While women are more likely to cite the pandemic as a source of anxiety in terms of job availability, their confidence in some areas outpaced men’s. When it came to confidence in their own experience and education, women responded slightly more positively (62%) than the total UK average (60%), and they’re also more confident than men about the availability of opportunities to grow their skills.

However, the data tells a story of women’s increasing concern when it comes to job availability and their own expenses. Compared to men, women are overwhelmingly more worried about the lack of jobs on the market – 42% cite it as a reason they’re feeling less confident.

There are some similarities between men and women: both are divided over the prospect of seeing their income increase anytime soon. When it comes to their chances of moving up within their fields, there’s again agreement: 23% of men and 28% of women find it a point of concern. But in heartening news for employers, confidence in their organisation’s recent performance is high for both women (44%) and men (40%).

Ultimately, the data shows that while men are still more confident in their overall job security, financial situation and career, women’s confidence is increasing at double the rate of their male counterparts – up eight points from the end of 2020 to a score of 20, compared to men’s score of 26, a four-point increase.

Methodology:

LinkedIn’s Workforce Confidence Index is based on a quantitative online survey that is distributed to members via email every two weeks. More than 500 members from the UK respond in each wave. Members are randomly sampled and must be opted into research to participate. Students, stay-at-home partners and retirees are excluded from analysis so we’re able to get an accurate representation of those currently active in the workforce. We analyse data in aggregate and will always respect member privacy. Data is weighted by engagement level, to ensure fair representation of various activity levels on the platform. The results represent the world as seen through the lens of LinkedIn’s membership; variances between LinkedIn’s membership and overall market population are not accounted for. Confidence index scores are calculated by assigning each respondent a score (-100, -50, 0, 50, 100) based on how much they agree or disagree with each of three statements, and then finding the composite average score across all statements.

Emma Hudson from the LinkedIn News UK team and Neil Basu and Alexandra Gunther from LinkedIn Market Research contributed to this article.