By Dan Cook
There’s more good news on the economic front. A large-sample survey of employees by Gallup
indicates employers are creating jobs, rather than eliminating them, at the highest rate in six years.
Gallup releases what it calls its job creation index. It is based upon interviews with employees who are asked whether their employers are creating or eliminating jobs. If the index is a positive number, that means jobs are being created. Negative numbers indicate more employers are cutting jobs. Gallup surveyed nearly 18,000 people for this report.
Its last peak—at plus-26—occurred in January 2008, right before the economic meltdown began. It bottomed out at minus-5 in 2009, and then began a slow crawl upward. In May, it stood at plus-27, a six-year high.
“The plus-27 index score for May is based on 40 percent of employees saying their employer is hiring workers and expanding the size of its workforce and 13 percent saying their employer is letting workers go and reducing the size of its workforce
,” Gallup reported, adding that 41 percent reported no staffing change.
Gallup said the private sector was the primary driver of the trend. State and local government hiring also contributed to the increase.
“Hiring activity continues to be much stronger in the private sector than in the government sector, with an index score of plus-29 among nongovernment employees (41 percent hiring and 12 percent letting workers go) and plus-14 among government employees,” Gallup said. “Both indexes are improving, however, with the private sector score at a new high and the government sector score two points below the January 2008 high.”
It’s worth noting this report dropped the same week as payroll giant ADP reported a stall in hiring.
Originally published on BenefitsPro.com