National Job Creation Remains Steady

The Gallop Job Creation Index averaged around +19 in October.  The Job Creation Index is obtained from surveying employees’ perceptions of workplace hiring and firing.  The percentage of employers who are firing is subtracted from the percentage of employers who are hiring. For the month of October, 35% of respondents said that their employers were expanding their workforce and 16% of respondents indicated that their employers were reducing their workforce.  These estimates of hiring and firing nationwide have remained steady in recent months, as the Job Creation Index has stayed in between +16 and +20 for the majority of 2012.

Regionally, employers in the Midwest (+23) and the South (+19) are consistently hiring and expanding more than employers in the East (+16) and West (+16).  In addition, nongovernment employers continue to score higher on the Job Creation Index (+22) than public-sector employers (+4).  However, in October, federal government employers (+8 percentage change) and state government employers (+5 percentage change) showed a significantly greater increase in Job Creation Index scores than private sector employers (+1 percentage change).  

Ultimately, nationally, the Gallop Job Creation Index remains steady and positive. However, the nation’s net-hiring score has not yet been restored to its pre-Recession 2008 peak (+26).  It is predicted that in response to the 2012 election, hiring and firing averages will fluctuate. If government leaders are able to effectively respond to economic challenges and implement national policies that boost employers’ confidence in the economy, it can be expected that the nation’s net-hiring score will improve.