PRINCETON, NJ -- Job market conditions improved in the United States in January as Gallup's U.S. Job Creation Index reached +16, its highest point since September 2008.





Hiring and Firing Improve, Are at Best Levels Since 2008

The Job Creation Index of +16 is based on 33% of workers nationwide saying their employers are hiring workers and expanding the size of their workforce, and 17% saying their employers are letting workers go and reducing the size of their workforce. Hiring and firing have each improved by one percentage point since December. The percentage hiring matches the 33% of June 2011, and the two reflect the highest hiring levels since September 2008. The percentage letting go is the lowest since June 2008.





Job Market Conditions Show Improvement vs. a Year Ago in All Regions

Job market conditions remain best in the Midwest, with a Job Creation Index of +20; the South is second, at +17. The Index is +11 in the East and +12 in the West. The largest year-over-year improvement has been in the Midwest and the West, both of which are up by seven points. The index has increased by four points in the South and three points in the East compared with the same month a year ago.





Implications

January's increase in Gallup's Job Creation Index is good news about job market conditions. The index is not seasonally adjusted and the job situation usually deteriorates at this time of year, making the improvement last month even more impressive.

The index also seems consistent with the government's weekly report on jobless claims, which are running under 400,000. Over time, the Job Creation Index has tended to correlate with this government report.

Job market conditions are uneven across the nation. In the Midwest, they are at their best since April 2008. Similarly, in the South, conditions are at their best since September 2008. This may suggest that manufacturing continues to improve in the middle of the country, helping those regions' job conditions to outpace conditions on both coasts.

Overall, Gallup's Job Creation Index suggests an improving job environment in January. This is probably not yet enough to stimulate significant job growth, but is enough to keep job conditions from deteriorating and is sufficient to provide some added optimism about the job situation going forward.

Gallup.com reports results from these indexes in daily, weekly, and monthly averages and in Gallup.com stories. Complete trend data are always available to view and export in the following charts:

Daily: Employment, Economic Confidence and Job Creation, Consumer Spending

Weekly: Employment, Economic Confidence, Job Creation, Consumer Spending

Read more about Gallup's economic measures.

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