US: Gallup U.S. Job Creation Index

Wed Jul 01 13:30:00 CDT 2015

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Gallup's U.S. Job Creation Index remained high in June at plus 32. The index score is based on 43 percent of workers saying their employer is hiring workers and expanding the size of its workforce and 11 percent saying their employer is letting workers go and reducing the size of its workforce and is the same as in May, which is the highest Gallup has found for the index.

The percentage of workers who say their company is expanding its workforce is not only well above the percentage who say their company is letting people go, but since April, it has also exceeded the percentage who report their workforce is not changing. So far in the index's history, this has only happened a few times.

Regionally, the index score in each region has generally followed the national trend, with a steep decline in 2008 through 2009 and improvement since then, including record highs in recent months. No one region has consistently outperformed the other regions over the last seven years. However, the East continues to slightly lag behind the other regions, as it has since 2013.

Gallup's Job Creation Index is based on a question that Gallup tracks daily, asking a nationally representative sample of 500 to 600 working adults, aged 18 and older, and reports monthly based on approximately 14,000 interviews. Gallup asks its sample of employed Americans each day whether their companies are hiring new people and expanding the size of their workforces, not changing the size of their workforces, or letting people go and reducing the size of their workforces. The resulting index -- computed on a daily and a weekly basis by subtracting the percentage of employers letting people go from the percentage hiring -- is a real-time indicator of the nation's employment picture across all industry and business sectors. The survey is conducted with respondents contacted on landlines and cellphones.

The hiring and firing trends that are the basis for Gallup's Job Creation Index provide key new insights into the potential future direction of job market conditions. Gallup's Job Creation Index provides information not available in some government indicators. For example, the government's weekly new jobless claims measure only reflects workers filing for benefits, yet not everyone who is laid off files for unemployment. The index may also detect hiring trends days or weeks before they are manifested in the official unemployment rate or other lagging indicators. Gallup has tracked its Job Creation Index daily since January 2008.