Gallup U.S. Job Creation Index reaches new high

Gallup's U.S. Job Creation Index reached a new high of plus 32 in May, up from plus 31 in April. In the government sector, perceived job creation ticked up to a new high. Nationally, workers' improved perceptions of hiring activity in their workplaces are a good sign for the economy as summer begins. The positive trend on job creation matches other reports of low unemployment that Gallup and the U.S. Bureau of Labor Statistics have found. However, there have also been several negative economic news items. Gallup's measure of Americans' economic confidence in May, and consumer spending was flat, but was down from prior highs. Altogether, the economy appears to show a mixture of good signs and bad signs. However, this new high in perceived job creation is a good sign for U.S. employment.

Within the government sector, the Job Creation Index score reached a new high of plus 25 in May. This is up from plus 22 in April and the previous high of plus 23 in August 2014. Despite the uptick in government job creation last month, perceptions of hiring among nongovernment workers have consistently been stronger than those of government workers since 2009. The index averaged plus 33 among nongovernment workers in May, consistent with the high found in April.