The Conference Board's Employment Trends Index Falls in September
The Conference Board’s Employment Trends Index (ETI) declined by 0.5% in September, dropping from a revised reading of 108.08 to 107.56. The index is designed as a leading indicator for payroll employment trends and suggests that job growth may slow following two consecutive months of increases. Despite the decline, the ETI remains 1.0% above its level one year ago, indicating moderate long-term hiring momentum. Key contributors to the drop included weaker consumer sentiment on job availability, reduced small business hiring activity, increased underemployment among part-time workers, and a decrease in temporary help services employment. However, fewer initial unemployment claims and an increase in job openings partially offset these negative trends. Four of eight components contributed positively, including industrial production and real manufacturing sales. The ETI is composed of various indicators such as consumer confidence, small business hiring data, and labor market statistics from government sources like the Bureau of Labor Statistics.
