Conference Board's Employment Trends Index Rises in June for Second Consecutive Month
July 06 2020 - 10:45AM
Dow Jones News
By Xavier Fontdegloria
An index measuring employment trends in the U.S. rose slightly
in June for second consecutive month as the labor market continued
to recover from the coronavirus shock to the economy, data from the
Conference Board showed Monday.
The Conference Board Employment Trends Index stood at 49.05 in
June, compared with a downwardly revised figure of 45.27 in
May.
The labor market is still far from making up all lost ground, as
the index is down 54.8% from a year ago, the report said. In
February, before the coronavirus hit to the economy, the index was
at 109.27.
The improvement of the Employment Trends Index follows a strong
employment report from the Bureau of Labor Statistics, published
last Thursday, which showed the U.S. created 4.8 million jobs in
June, pushing the unemployment rate down to 11.1%.
The virus' recent proliferation, however, could derail these
gains as many governments have delayed or reversed their reopening
plans, which could lead to lower hiring, Gad Levanon, head of The
Conference Board Labor Markets Institute, said in prepared
remarks.
"Given the possibility of less recruiting and the fact that
layoff rates remain high, the upward trend in the number of jobs
may not continue. The unemployment rate may plateau or even
increase in the coming months," Mr. Levanon said.
The Employment Trends Index aggregates eight labor
market-related indicators to show underlying trends in employment
conditions. All of them made positive contributions to the index in
June.
From the largest positive contributor to the smallest, these
were: initial claims for unemployment insurance, the number of
employees hired by the temporary-help industry, the ratio of
involuntarily part-time to all part-time workers, industrial
production, the percentage of firms with positions not able to fill
right now, the percentage of respondents who say they find "jobs
hard to get," real manufacturing and trade sales, and job
openings.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
(END) Dow Jones Newswires
July 06, 2020 10:30 ET (14:30 GMT)
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