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Conference Board: Employment Trends Index (ETI) increases in May

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Conference Board: Employment Trends Index (ETI) increases in May

Solid job growth likely to continue.

The outlook for jobs got another boost as the Conference Board reported positive momentum in May.

The company reported that its Employment Trends Index increased in May. The index now stands at 118.58, up from 117.32 (a downward revision) in April. This represents a 5.4% gain in the ETI compared to a year ago.

"The Employment Trends Index continues to signal solid job growth with an improvement in each of its eight components in the first five months of 2014."

"The Employment Trends Index continues to signal solid job growth with an improvement in each of its eight components in the first five months of 2014," said Gad Levanon, Director of Macroeconomic Research at The Conference Board. "The need for employers to rapidly expand their payroll in light of strengthening economic activity is a major factor in the rapid decline in the unemployment rate."

On the other hand, while job creation has been steady over the past several months, another significant factor in the drop in the unemployment rate has been the continuing exodus of many eligible workers from the workforce.  The employment participation rate is at historically low levels.

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May's increase in the ETI was driven by positive contributions from seven of its eight components. In order from the largest positive contributor to the smallest, these were: Industrial Production, Initial Claims for Unemployment Insurance, Real Manufacturing and Trade Sales, Ratio of Involuntarily Part-time to All Part-time Workers, Number of Temporary Employees, Job Openings, and Percentage of Respondents Who Say They Find "Jobs Hard to Get."

 

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