More softening is seen in the labor market, according to the Conference Board’s employment trends index, which slid to 112.1 in July from 113.1 in June.
The index has been in a year-long decline in July, falling more than 7.5% from July 2007.
“This economy remains too weak to stem the monthly loss in jobs,” said Gad Levanon, senior economist at the board. “Unless the labor market turns around soon, unemployment could pass 6% in early 2009 — and the Conference Board’s employment trends index isn’t signaling any such improvement around the corner.”
