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Wednesday, January 18, 2012
PRINCETON, NJ—Gallup’s Job Creation Index was at +15 in June. While this does not differ much from the +14 of May or the +13 of April, it is the highest since September 2008’s +16.
The Job Creation Index has increased steadily if marginally in 2011. This continues a pattern that began after the Index matched its low point of -5 in April 2009, and is consistent with the improvement in the overall U.S. job situation over the past couple of years.
Hiring Increases Modestly in 2011
The Job Creation Index score of +15 in June is based on 33% of workers nationwide saying their employers are hiring and 18% saying their employers are letting workers go. Between 18% and 19% of workers have said their employers are reducing staff size throughout the first half of 2011. However, there has been a slight increase in the percentage saying their companies are hiring employees and expanding their workforces, from 29% in January to 33% in June.
Job Market Conditions Are Similar Across the U.S.
Job market conditions are best in the Midwest at +17 and worst in the West at +12. Since June 2010, job creation has improved by 12 percentage points in the East—the most of any region. The job market in the South has seen the smallest improvement—up 1 point—over the same period.
Implications
Gallup’s Job Creation Index, at +15 for June 2011, is much improved over June 2010’s +8 and June 2009’s -3 readings. One reason for this improvement, according to employee reports, is that the nation’s employers are holding on to their workers; the percentage currently letting people go is just about where it was in June 2008. Additionally, the percentage reporting their employer is hiring has increased slightly during the first half of 2011.
However, companies are still not in a hurry to hire. The percentage saying their employers were hiring in June is down seven points from January 2008, when the recession was just getting underway. New jobs are being created at an anemic pace compared with what is needed to lower the U.S. unemployment and underemployment rates. These job creation trends are consistent with Gallup’s recent unemployment report that shows the current job situation has seen little year-over-year improvement.
posted in: EmployerNews, News
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