Home | News & Opinion | Employment Trends Index increased slightly in May

Employment Trends Index increased slightly in May

By
Font size: Decrease font Enlarge font
Employment Trends Index increased slightly in May

Growth continues, but at a slower pace.

The Conference Board reported today that its Employment Trends Index increased slightly in May, rising from a revised 128.1 in April to 128.60. The change represents a 5.1% gain in the ETI compared to a year ago.

"In the past six months, the Employment Trends Index has been growing at a 3.5% annual rate, which is solid, but slower than the rates of the past two years. We therefore expect employment to grow by about 200,000 new jobs per month, rather than the spectacular 250,000-300,000 we experienced in 2014," said Gad Levanon, Managing Director of Macroeconomic and Labor Market Research at The Conference Board. "Given that the labor force is barely expanding, job growth of about 200,000 per month will be sufficient to continue rapidly lowering the unemployment rate."

"We expect employment to grow by about 200,000 new jobs per month."

May's increase in the ETI was driven by positive contributions from six of the eight components. In order from the largest positive contributor to the smallest, these were: Percentage of Firms with Positions Not Able to Fill Right Now, Industrial Production, Real Manufacturing and Trade Sales, Number of Employees Hired by the Temporary-Help Industry, Initial Claims for Unemployment Insurance, and Job Openings.

The Employment Trends Index aggregates eight labor-market indicators, each of which has proven accurate in its own area. Aggregating individual indicators into a composite index filters out "noise" to show underlying trends more clearly.

Share this:

 

Join PRESIDENT&CEO on LinkedIn

Subscribe to comments feed Comments (0 posted)

total: | displaying:

Post your comment

  • Bold
  • Italic
  • Underline
  • Quote

Please enter the code you see in the image:

Captcha