Employee sentiment posts broad-based decline in January

The Employee Motivation and Commitment Index fell for the fifth straight month, dropping 7 points to 135, its lowest level since May 2025 and the largest month-over-month decrease since the index was launched in 2021.

The decline was broad-based. Sentiment weakened in all but one of the 10 sectors we track, among all three worker types, and among survey respondents at all but the smallest employers.

Information workers posted the largest decline, falling 19 points to 126, the sector’s steepest month-over-month drop since November 2023. Healthcare and social assistance fell 11 points to 121, its lowest mark since April 2024. Finance and insurance dropped for the third month, shedding 10 points to 106.

Real estate, where sentiment is typically volatile, was the only sector to show improvement, rising 8 points to 111.

Sentiment also weakened across all three work types. Among knowledge workers, it declined for the third month, falling 7 points to 125, its lowest level since April 2025. Sentiment among repetitive task workers fell 6 points to 110; among skilled task workers it was down 1 point to 136.

Sentiment also fell in all but one of the seven employer size categories we track. Workers at large employers showed particular weakness, while those at the smallest businesses, with one to 50 employees, showed the only improvement.

Among the largest employers, those with 5,000 or more people, sentiment fell to 88, its lowest level since March 2024.

At employers with 2,500 to 4,999 workers, sentiment weakened by 14 points to 136. Sentiment in this category has been declining rapidly since its record high of 179 in October.

Small businesses, which we define as 1 to 50 workers, showed the only increase, rising 2 points to 105.

“January delivered a poor showing for worker sentiment almost across the board,” said Dr. Mary Hayes, director of People and Performance at ADP Research. “Despite this decline, fewer of our survey respondents are signaling an intent to leave their current jobs, which suggests that opportunities might be scarce.”

About the EMC Index

The Employee Motivation and Commitment Index tracks how people think and feel about their jobs and employers. ADP Research collects data each month using a panel survey to gather a stratified, random panel sample of 2,500 U.S. workers. This month’s survey was fielded January 2-6, 2026.

We identify respondents by work type based on their choice of three options:

• I have a level of freedom to use my expertise to create something new. (Our definition of knowledge worker.)
• I use a level of expertise to solve similar problems each day. (Our definition of skilled task worker.)
• I do similar repetitive tasks each day. (Our definition of repetitive task worker.)

We began tracking survey respondents by employer size in December 2022. Beginning in January 2026, this metric will be included in our series each month.

By providing a real-time measure of the state of worker allegiance, the index can tell us whether people are flourishing in their jobs or detaching. ADP Research publishes the EMC Index on the third Tuesday of every month. The next release will be February 17.