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.

Related Terms View All
  • Auction Market
    Though most of the trading is done via computer, auction markets can also be operated via...
  • Best Execution
    Let's assume you place an order to buy 100 shares of Company XYZ stock. The current quote...
  • Book-Entry Savings Bond
    Savings bonds are bonds issued by the U.S. government at face values ranging from $50 to...
  • Break-Even Point
    The basic idea behind break-even point is to calculate the point at which revenues begin...
  • Calendar Year
    If Company XYZ starts its fiscal year on January 1 and ends its fiscal year on December...