US employment trends index falls in May

By Ovunc Kutlu

ISTANBUL (AA) - The US employment trends index (ETI) fell in June, New York-based research group the Conference Board said in a statement on Monday.

The index, a leading composite indicator for employment, last month fell 0.77 points to 110.27.

The figure for May was revised slightly downwards to 111.04 from 111.44.

"The ETI fell in June, continuing the downward trajectory observed since the measure peaked in March 2022," said Will Baltrus, an associate economist at the board.

"June’s ETI downtick signals employment could fall in the second half of 2024."

"While June’s ETI suggests an aggregate reduction in employment ahead, we anticipate the labor market will only cool modestly," he added. "Indeed, as long as companies are willing to retain workers, net nonfarm payrolls are likely to remain positive."

Baltrus noted that June jobs report showed an increase of 206,000 in payrolls, up for the 41st consecutive month, adding the US labor market remains resilient despite slowing real GDP growth "because many employers continue to hoard workers, despite rising labor costs."