UK Accounting Glossary
Jobs growth is the number of jobs added to the U.S. economy each month. Jobs growth is based on the number of payroll jobs as reported by the Bureau of Labor Statistics’s (BLS) establishment survey, also known as the payroll survey. Strong jobs growth (of, say, 200,000 jobs) is an indication of healthy labour markets and a robust economy, while lacklustre jobs growth (of, say, 50,000) points to economic weakness. Investors, however, may also view strong jobs growth as a sign of inflation and, in turn, higher interest rates, while tepid jobs growth may soothe inflation fears. The jobs growth indicated by the establishment survey is based on different data than the unemployment report based on the BLS’s household survey. Notably, the jobs growth report includes only payroll jobs, while the unemployment report includes those that are self-employed. Whether jobs growth or unemployment is the better indicator of labour markets is controversial, especially when jobs growth and unemployment trend differently, as they did at times during the early 21st century. Jobs growth is reported on the first Friday of each month (say, December) based on data for the previous month (say, November) by the BLS in its employment situation report.
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This glossary post was last updated: 9th February 2020.