The economy is adding jobs at a healthy pace. Last month’s jobs report from the government was a bit disappointing, but it followed a gain in February that was truly spectacular.
Last week, we got some news that this trend of positive job growth will continue, or even improve.
The Conference Board reported that its Employment Trends Index (ETI) increased in March, after increasing in February. The index now stands at 107.72, up from 107.31 (a downward revision) in February.
This change represents a 5.5 percent gain in the ETI compared to a year ago.
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.
“The ETI continued its upward trend in March, suggesting that job growth will remain robust in the coming months,” said Gad Levanon, Chief Economist, North America, at The Conference Board. “We interpret Friday’s disappointing job numbers as noise in an otherwise fast-growing labor market.”
March’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: Ratio of Involuntarily Part-time to All Part-time Workers, Industrial Production, Percentage of Firms With Positions Not Able to Fill Right Now, Percentage of Respondents Who Say They Find “Jobs Hard to Get,” and Real Manufacturing and Trade Sales.
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