The Job Creation Index is a measure of net hiring in the U.S. February’s 21 score means that approximately 36% of Americans say their employer is hiring, while 15% say their employer is letting workers go. The other 43% of workers report no change in hiring by their employer.
Job creation in the private sector scored 23, while job creating in the government sector (state and local) came in at 13. The federal government job creation index increased five points, but continues to be negative.
Gallup creates the Job Creation Index by taking a nationally representative sample of 500 to 600 working adults, aged 18 and older, and reports monthly based on approximately 14,000 interviews. Gallup asks its sample of employed Americans each day whether their companies are hiring new people and expanding the size of their workforces, not changing the size of their workforces, or letting people go and reducing the size of their workforces.
The broader market does not pay much attention to Gallup’s U.S. Job Creation Index, but instead focuses on the Jobless Claims and Employment Situation reports. Nevertheless, the Job Creation Index could be an early read on the jobs picture reported in these other reports.