U.S. Job Creation Steady in October Near Four-Year High

U.S. Job Creation Steady in October Near Four-Year High

 

U.S. workers reported little change in net hiring at their workplaces in October, with the Gallup Job Creation Index averaging +19 for the month, similar to the +18 recorded in September. The index has been between +17 and +20 since March, essentially hovering at the highest levels seen since mid-2008.

The Job Creation Index in October reflects 35% of U.S. adult workers saying their employers are hiring and expanding the size of their workforces, and 16% saying their employers are letting workers go and reducing the size of their workforces. Both components of the index have also been steady in recent months.

Midwest and Non-Government Hiring Remains Strongest

Hiring is strongest in the Midwest, where the Job Creation Index was +23 in October, followed by the South at +19. This conforms to Gallup trends since late 2010 showing the South and Midwest consistently outpacing the East and West in job creation.

Net hiring also remains solidly positive in the private job sector, at +22 in October, and is more robust than government hiring, which averages +4. However, among the various levels of government, state government hiring is relatively strong, at +11, compared with +2 for local governments and -5 for the federal government.

Bottom Line

At +19, Gallup's U.S. Job Creation Index remains fairly positive, and much improved over 2009, when more employees reported a net loss of jobs where they worked rather than a net gain. However, the momentum in hiring seen earlier this year has clearly stalled, thus failing to restore the index to the higher levels seen at the start of 2008. Americans' economic confidence wasn't robust even then; still, fully 40% of U.S. workers said their employer was adding workers and only 14% letting go, for a net-hiring score of +26.

With the 2012 election over, and both government and private employers able to better evaluate what the future will hold, hiring may again start to move. Whether it moves in the right direction will partly depend on the confidence that employers and government leaders have that the same divided government in charge of setting national policy for the last two years will be better able to address the nation's economic challenges in the next two.
From: http://www.gallup.com
Updated: November 7, 2012