Hiring Activity Based On Worker Perceptions Is At Its Highest Point Since 2008
In May, 44 percent of U.S. workers said their employer is hiring and expanding the size of its workforce and only 11 percent said their employer is letting workers go and cutting the number of jobs. This results in a +33 Job Creation Index score, which is the highest monthly average to date, surpassing the previous high by one point, Gallup reports.
May’s +33 was three points higher than in April. An improvement in the score between April and May has become a common trend, as it has happened regularly since 2013 and has occurred most years since 2008. The previous Index high of +32 happened between April and May of 2015. In addition to the 44 percent of workers who reported net hiring and the 11 percent who reported a decrease in net hiring, another 39 percent said the size of their workforce is unchanged.
On a regional basis, the Midwest is leading the way with a Job Creation Index score of +34. The Midwest is followed by the West (+33), the East (+32), and the South (+31).
This data comes as good news after April experienced the addition of only 160,000 jobs, far below what analysts had predicted. The Bureau of Labor Statistics will release the May employment report later in the week.
Consumer spending, which is the major driver of the U.S. economy, rebounded nicely in April and more economic activity so far this spring may have eased the fears of employers about adding to their payrolls.
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