The Conference Board Employment Trends Index™ (ETI) Increased in July

Index Rising More Slowly in Recent Months

News provided by

Aug 09, 2010, 10:00 ET

NEW YORK, Aug. 9 /PRNewswire/ -- The Conference Board Employment Trends Index™ (ETI) increased in July for the 14th month in a row. The index now stands at 97.0, up from June's figure of 96.7. The index is up 9.8 percent from a year ago.

"The growth rate of the Employment Trends Index slowed sharply in the past three months, suggesting that employment growth will remain too weak to keep up with the increase in the working age population," said Gad Levanon, Associate Director, Macroeconomic Research at The Conference Board. "The disappointing employment numbers may indicate that the low levels of household spending and confidence are making businesses more cautious when it comes to hiring."

This month's increase in the Employment Trends Index was driven by positive contributions from six out of the eight components. The improving indicators were: Initial Claims for Unemployment Insurance, Percentage of Firms With Positions Not Able to Fill Right Now, Part-Time Workers for Economic Reasons, Job Openings, Industrial Production and Real Manufacturing and Trade Sales.

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 so-called "noise" to show underlying trends more clearly.

The eight labor-market indicators aggregated into the Employment Trends Index include:

Percentage of Respondents Who Say They Find "Jobs Hard to Get" (The Conference Board Consumer Confidence Survey®)
Initial Claims for Unemployment Insurance (U.S. Department of Labor)
Percentage of Firms With Positions Not Able to Fill Right Now (© National Federation of Independent Business Research Foundation)
Number of Employees Hired by the Temporary-Help Industry (U.S. Bureau of Labor Statistics)
Part-Time Workers for Economic Reasons (BLS)
Job Openings (BLS)
Industrial Production (Federal Reserve Board)
Real Manufacturing and Trade Sales (U.S. Bureau of Economic Analysis)

The Conference Board publishes the Employment Trends Index monthly, at 10 a.m. ET on the Monday that follows each Friday release of the Bureau of Labor Statistics employment situation report. The technical notes to this series are available on The Conference Board website: http://www.conference-board.org/data/eti.cfm.

ABOUT THE CONFERENCE BOARD

The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: To provide the world's leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board is a non-advocacy, not-for-profit entity holding 501(c)(3) tax-exempt status in the United States.

Follow The Conference Board

Twitter | facebook | LinkedIn

SOURCE The Conference Board