On a day when official GDP figures may mark the end of the recession, employees report plunging job satisfaction levels as well as falling standards of living over the last six months.

This bleak picture is painted by the Chartered Institute of Personnel and Development’s (CIPD) quarterly Employee Outlook survey, of more than 2,000 employees throughout the UK.

Despite the resurgence in the stock market and the gradual appearance of economic green shoots, the ‘real’ economy as experienced in people’s day-to-day lives has yet to witness any signs of recovery, with people under increasing pressure both at work and in their personal finances.

Employees are more than twice as likely to say their personal standard of living has worsened (28%) over the last six months, as they are to say it has improved (14%).

At the same time the CIPD net employee job satisfaction score* has dipped substantially from +46 to +37 since the spring.

The fall in job satisfaction, which has been marked across both the private and public sectors, has been accompanied by an increase in the proportion of people reporting they are under excessive pressure at work, either every day or once or twice a week to 42% from 38% six months ago.

Employees are also more likely to say that they have seen increases in stress and conflict at work, as well as bullying by line managers as a result of the recession.

Claire McCartney, resourcing and talent planning adviser, CIPD, said: “Back in the spring we interpreted such high job satisfaction in the face of the recession as a 'fixed grin', where employees felt lucky enough just to have a job. It seems that in this

quarter the fixed grin is slipping and the temporary goodwill is being replaced with increasing frustration. There is a danger this could undermine productivity and competitiveness among firms where the problem is acute, putting any sustainable recovery at risk.”

The survey also shows workers remain very pessimistic about the state of the labour market.

Although there has been a very slight reduction in the proportion of employees thinking it is likely they could lose their jobs to 17%, there has been a slight increase in the proportion of people thinking it would be difficult (62%) to get a new job if they were to be made redundant.

Yet, the proportion of people that ideally would like to change jobs has increased from 34% to 40% since April, indicating that employees are increasingly restless working for their current employer; posing a real threat to employers as the labour market recovers.

McCartney added: “The survey underlines the importance of employers looking to build the resilience and engagement levels of staff in the face of rising stress at work, which is linked both to ill health and lower productivity.

"There’s a real danger that employers could face a talent drain as the labour market recovers – just when they need all hands to the pump to capitalise on recovery.

"Effective communication and consultation becomes critical in times of organisational change and turmoil to ensure employees feel consulted and, therefore, motivated to go the extra mile. Employers should also focus on developing the people management skills of their front line managers if they want to manage stress effectively and encourage and enable employees.”