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New jobs indexes show labor market still in solid shape


The employment trends index shows a jobs market in solid shape.

A pair of labor-market indicators released Monday portray a
labor market that’s still in pretty good shape, even after a
report from the government showed about 50,000 fewer jobs
created than forecast.

The Conference Board’s employment trends index rose 0.7% in
May, and 6.4% from a year ago. The index aggregates eight
labor-market indicators in an effort to show underlying trends
more clearly.

Seven of those eight components rose in May, the Conference
Board said.

“Employment will likely grow fast enough to continue tightening
the labor market,” said Gad Levanon, chief economist, North
America for the Conference Board.

Meanwhile, the employment index in the Institute for Supply
Management services index shot up 6.4 points to 57.8%, well
above the 50% mark indicating growth and the strongest reading
in close to two years. Fifteen industries reported increased
employment, and just one industry reported decreased
employment.

What the ISM services employment index jump may represent is a
reversion to solid growth after two previous readings in the
51% range.

The Labor Department on Friday reported that growth in the
services sector slowed to 131,000 from 154,000 in April, but
that followed a weak 42,000 in March.

Overall U.S. jobs growth slowed to 138,000 from
174,000
in April.

Also see: The surprising threat to the
American economy

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