June Employment Trends Index rises
The Conference Board's Employment Trends Index increased to 108.94 in June from 107.72 in May, the Board said on Monday.
The ETI is up 5.2% on a year over year basis.
“As expected, after decreasing in May, the Employment Trends Index continued its solid path upwards in June, with positive contributions from all of its components,” Gad Levanon, the Board’s chief economist in North America, said in a release “The labor market will continue to tighten in the coming months, with strong employment growth outpacing the number of people entering the labor force.”
The Board said that June’s rise was fueled by positive contributions from all eight components. From the largest positive contributor to the smallest, these were: the ratio of involuntarily part-time to all part-time workers, the percentage of firms with positions not able to fill right now, percentage of respondents who say they find “jobs hard to get,” industrial production, job openings, real manufacturing and trade sales, number of employees hired by the temporary-help industry, and initial claims for unemployment insurance.
The ETI aggregates eight labor-market indicators, which the Board says filters out “noise” to show underlying trends more clearly.
The eight labor-market indicators aggregated into the ETI include: Percentage of respondents who say they find “jobs hard to get;” initial claims for unemployment insurance; percentage of firms with positions not able to fill right now; number of employees hired by the temporary-help industry; ratio of involuntarily part-time to all part-time workers; job openings; industrial production; and real manufacturing and trade sales.