Just 33 days (31 days from today) before the national election, a report out of Washington states that the nongovernment workers reported the worst job creation conditions in September since February.
Gallup’s Job Creation Index score of +21 among nongovernment workers is down from +23 in August and a high of +25 in April.
Gallup reported that during the same reporting period the job creation climate within state and local government was more positive. That helped sustain the overall U.S. job creation nationally.
(Gallup’s Job Creation Index scores reflect the difference between the percentage of workers who say their employer is hiring and expanding the size of its workforce and the percentage who say their employer is letting workers go and reducing the size of its workforce.)
While all job creation is a positive for those seeking employment, having a decline in nongovernment sector is not a good sign for the future of our economy. It’s that private sector job growth that will signal a positive attitude exists in our gross domestic product. Why? Private sector growth signals an uptick in production of goods and services. That shows up in an increase in our gross domestic product.
“Gallup has also documented that politics are clearly influencing economic perceptions at this point, just over a month before the U.S. presidential election,” Gallup News stated. “If either job seekers or employers become more optimistic about the economy and take new action to successfully secure or create jobs, it could help improve the nation’s job creation picture. At the same time, if just as many job seekers or employers become more negative or take a wait-and-see attitude before the election, the situation risks remaining stagnant at best.”
Conclusion? Every private business seems to be waiting to see what the outcome of the election is before investing or enlarging places for job creation.
To review more of the Gallup Economy report go to Gallup’s website and click on Gallup Economy.