Gallup's U.S. job creation index held unchanged at 32 in August for the 4th consecutive month. This is the best level in the 7-year history of the report and suggests that hiring activity is strong and has not been interrupted by volatility in the global markets.
In August, 44% of employed Americans reported that their employer was hiring while 12% reported that their employer was letting people go. Thirty-nine percent said their employer was not changing the size of the workforce.
Regional job creation in August was consistent with what Gallup has found for most of the summer, with job creation highest in the Midwest and lowest in the East. And net hiring in the nongovernment sector remains slightly higher than in the government sector. The poll was conducted throughout the month of August with the random sample totaling over 17,500 adults.
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.
CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.