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The Conference Board Employment Trends Index (ETI) increased in January, after increasing in December. The index now stands at 106.93, up from 106.59 (a downward revision) in December. The change represents a 5.4% gain in the ETI compared to a year ago.
“The Employment Trends Index continues its solid path upwards and shows no sign of slowing down,” said Gad Levanon, Chief Economist, North America, at The Conference Board. “A strong US economy provides additional tailwinds to employment growth, bringing down the unemployment rate even further and encouraging more men and women to join the labor force.”
January’s increase in the ETI was fueled by positive contributions from five out of the eight components. From the largest positive contributor to the smallest, these were: Percentage of Firms with Positions Not Able to Fill Right Now, Industrial Production, Initial Claims for Unemployment Insurance, Real Manufacturing and Trade Sales, and Number of Employees Hired by the Temporary-Help Industry.
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 “noise” to show underlying trends more clearly.
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. Winner of the Consensus Economics 2016 Forecast Accuracy Award (U.S.), The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States.