U.S. Job Creation Index near record high in June
For 16 straight months, the Job Creation Index has been at or over +30, signifying a greatly improved and steady job market compared with the years during and immediately after the Great Recession.
Various indicators suggest the U.S. economy is generating new jobs at a steady pace, although only 138,000 jobs were created in the month of May, the last month for which government data are available.
This report fell short of expectations and was a drop from more robust government numbers in April.
Gallup's Job Creation Index, by contrast, showed no significant drop in May and has again shown no significant change for June.
Economists claim that, at 4.3% unemployment in the U.S., the country is nearing "full employment" in which everyone who wants a job can find one.
This does not mean every job is a "good job," however, as Gallup's Good Job Index shows. Even those with full-time jobs may not be employed in the type of job they would ideally like.
Gallup's Job Creation Index is based on employed U.S. adults' reports of whether their employer is hiring workers and expanding the size of its workforce, or letting people go and reducing numbers of employees.
Gallup computes the index by subtracting the percentage of those who say their employer is cutting jobs from the percentage who say their employer is adding jobs.
In June, 45% of employees said their company was hiring, about matching the 46% in May. The percentage who said their company was letting workers go held steady at 9%.
Forty-one percent of workers said their employer was not changing the size of its workforce.
The Job Creation Index is a nearly real-time indicator of the nation's employment picture across all industries and business sectors.
Gallup's index does not measure the type (full time or part time) or quality of the job gains or losses as reported by workers. ■