Employment Trends Index Shows Moderate Job Growth In June
The Conference Board has reported that its Employment Trends Index (ETI) increased in June, following a decline in May. The index now stands at 128.13. Up from 126.42 in May, the change represents a 1.8-percent gain compared to a year ago.
“The Employment Trends Index has been moving sideways in the first half of 2016, suggesting only moderate job growth in the coming months,” says Gad Levanon, chief economist, North America, at The Conference Board. “In such an uncertain political and economic environment, U.S. businesses, which in total have been experiencing shrinking profits for over a year, are unlikely to rapidly expand their payrolls.”
The ETI aggregates eight labor market indicators into a composite index to filter out “noise” to show trends more clearly. June’s increase was driven by positive contributions from all eight components. In order from the largest positive contributor to the smallest, these were: Ratio of Involuntarily Part-time to All Part-time Workers, Initial Claims for Unemployment Insurance, Percentage of Respondents Who Say They Find “Jobs Hard to Get,” Percentage of Firms With Positions Not Able to Fill Right Now, Real Manufacturing and Trade Sales, Number of Employees Hired by the Temporary-Help Industry, Industrial Production and Job Openings.