Job Creation Reaches 2-Year High

December 7, 2010

This article is included in these additional categories:

Analytics, Automated & MarTech | Data-driven | Financial Services | Local & Directories / Small Biz | Staffing

The Gallup Job Creation Index hit +11 in November 2010, its best reading since September 2008, with job creation highest in the Midwest, at +15, and lowest in the West, at +5.

Hiring and Letting Go Have Each Improved Nationwide

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The 30% of workers nationwide who report their employer is hiring and the 19% who say their employer is letting people go represent an improvement from job market conditions recorded by Gallup in January 2010, when 23% of firms were hiring and 24% were firing.

The current Job Creation Index nationwide score is are also better than the +2 of November 2009 and the +6 of November 2008. However, it remains far worse than the +26 of January 2008; the point at which the recession was just getting underway.

Midwest Is Best and Improving

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Hiring in the Midwest increased to 32% in November and firing fell to 17%, improving the region’s Job Creation Index to +15 from +11 in October. This reflects both the largest increase and the best job-creation conditions of any region tracked by Gallup.

Continued improvements in the manufacturing sector as well as for farm and other commodities have produced a sharp rise in job market conditions in this region from the +1 hiring-firing gap of November 2009 and the +2 of November 2008.

South Job Market Nearly as Good

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Job conditions in the South are nearly as good as those in the Midwest, with hiring at 31% and firing declining to 18%. The region’s Job Creation Index is +13, matching its best of the year and otherwise its highest reading since October 2008. Gallup analysis suggests recent improvement of job conditions in the South may reflect some recovery from the effects of the BP oil spill and the continuing growth of US exports.

East Is Stable, at Best Level since September 2008

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In the East, 31% of employers have been hiring and 20% letting employees go for the past three months, for an index that matches the current national average of +11. Although stable, job market conditions here remain at their best since September 2008 and appear to reflect what Gallup terms a return to stability on Wall Street as well as in the US financial sector.

West Shows Stability but Trails Other Regions

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Hiring and firing activity in the West continues to trail that of other regions, with 27% of companies hiring and 22% letting employees go, for an index of +5. The job market in the West has not improved since summer and may reflect what Gallup calls some of the worst housing and real estate market conditions in the US.

Job Market Improving, But Has Long Way to Go

Employees nationwide report hiring and firing activity at their places of work that is the best recorded by Gallup since September 2008. Still, the US job situation remains far worse than it was in January 2008, as the recession was getting underway, and seasonal holiday jobs may be inflating actual long-term employment numbers. However, Gallup still advises unemployment and job creation data suggest new jobs are being created at the best rate in more than two years.

Majority See Job Market Flat in Near-term

When asked about how the job market will look in six months, the majority (53%) of all respondents to a recent Harris Poll said it will be about the same. A virtually identical 23% said it will be better and 24% said it will be worse.

Considering that about two-thirds of all respondents say the current job market is bad, this means many of those saying the job market will remain flat in the near term are expecting it to perform poorly at least through early spring 2011.

About the Data: For Gallup Daily tracking, Gallup interviews approximately 1,000 national adults, aged 18 and older, each day. The Gallup Job Creation Index results are based on a random sample of approximately 500 current full- and part-time employees each day. National results for November are based on Gallup Daily tracking interviews with 15,163 employees.

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