Last week, the Bureau of Labor statistics released a strong employment report for June. This week, a report that serves as a “look ahead” at hiring trends also came in with a strong reading.
The Conference Board said that its Employment Trends Index (ETI) for June was up from May’s reading, and represented a 6.3% gain versus June 2013.
According to the Board, June’s increase was driven by positive contributions from such factors as the Percentage of Firms With Positions Not Able to Fill Right Now, Real Manufacturing and Trade Sales, Industrial Production, Number of Temporary Employees, Percentage of Respondents Who Say They Find “Jobs Hard to Get,” Job Openings, and Ratio of Involuntarily Part-time to All Part-time Workers.
These are all “leading indicators” of where employment is headed in the near future. The Board said that seven of the eight factors it measures increased during June.
What this means is that we could be seeing some strong jobs numbers in the months ahead. Given the very good performance posted in June, that could well result in unemployment and labor participation rates not seen since the “good old days” before the recession.
More importantly, a several months of better-than-expected jobs reports could signal a strong – and durable – economic recovery.
Copyright Today’s Credit Unions