Employment trends index shows slowdown in positive job growth
Following the US Bureau of Labor Statistics’ monthly employment bulletin report, the Conference Board Employment Trends Index was released on 6 June 2022. The employment index indicated a slowdown in job growth in the months ahead.
Despite job growth remaining positive, the measure moved downward from a reading of 120.60 in April to 119.77 in May.
Sectors involving leisure and hospitality as well as in-person services have not yet completely recovered from their Covid-linked job losses. However, with consumers likely to move from spending on goods to services, these industries will likely see some employment growth.
Agron Nicaj, Associate Economist at The Conference Board, commented: “The labor market may have less room for more growth with overall employment down only 0.5% compared to the pre-pandemic level.”
“The labor market remains strong amid high inflation, and the Federal Reserve is likely to continue its focus on stabilizing prices as a result,” but “a strong response by the Fed risks higher unemployment rates by the end of 2022.”