Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Jobs Growth

What it is:

Jobs growth is a U.S. economic indicator that represents the number of new jobs created in a given month.

How it works (Example):

The U.S. Bureau of Labor Statistics publishes its jobs growth number each month as part of its Employment Situation Summary. Jobs growth reflects the total number of new U.S. jobs created during a given month. It includes payroll jobs created by employers, but not new self-employment jobs.

Higher jobs growth numbers indicate increasing economic growth and a strengthening job market. For instance, a jobs growth figure of 75,000 is preferable to a figure of 50,000.

Why it Matters:

The Bureau of Labor Statistics only considers jobs growth figures of 100,000 or more to have a positive, sustainable impact on economic growth. It's important to note that many analysts believe that consistently high jobs growth figures may point to rising interest rates and inflation.