Job Creation Index Hits a New High
One of the most important factors in the health of the real estate market is the job market. After all, people can only achieve their dreams of homeownership when they are reliably and gainfully employed. Therefore, as a mortgage loan company, we are heartened to see the recent trends in employment.
According to Gallup’s US Job Creation Index, job creation is at an all-time high since the index began in 2008. In May of 2014, the index came in at +27, beating out the prior high of +26 from all the way back in January of 2008 when the country was just starting to fall into recession.
This number is based on a survey of the American workforce, where the percentage of people who reported that their workplace was reducing the size of its workforce is subtracted from the number of people who reported that their workplace was expanding the size of its workforce. In May, it was found that 40% of employees reported that their company was hiring new workers, while only 13% were experiencing a staff reduction. Another 41% reported no change in staffing.
This new high was strongest in the private sector, with an index of +29 for non-government jobs and only +14 for government jobs. However, both sectors appear to be showing improvement, with the government sector only two points shy of its previous high in 2008. All in all, it’s a very positive outlook for the recovering economy.
