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The Conference Board ETI Rebounded in September
October 10, 2016 | PRNewswireEstimated reading time: 1 minute
The Conference Board Employment Trends Index™ (ETI) increased in September, after a slight decline in the prior month. The index now stands at 128.51, up from 127.96 (a downward revision) in August. The change represents a 1.1% gain in the ETI compared to a year ago.
"The Employment Trends Index increased to 128.51 in September, despite a large decline in one component, NFIB, and suggests moderate job growth through the first quarter of 2017," said Gad Levanon, Chief Economist, North America, at The Conference Board. "Despite the recent declines in corporate profits, employers are not showing any signs of reducing payrolls."
September's improvement in the ETI was fueled by positive contributions from seven of the eight components. In order from the largest positive contributor to the smallest, these were: Percentage of Respondents Who Say They Find "Jobs Hard to Get," Ratio of Involuntarily Part-time to All Part-time Workers, Initial Claims for Unemployment Insurance, Number of Employees Hired by the Temporary-Help Industry, Real Manufacturing and Trade Sales, Job Openings, and Industrial Production.
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 eight labor-market indicators aggregated into the Employment Trends Index include:
- Percentage of Respondents Who Say They Find "Jobs Hard to Get" (The Conference Board Consumer Confidence Survey®)
- Initial Claims for Unemployment Insurance (U.S. Department of Labor)
- Percentage of Firms With Positions Not Able to Fill Right Now (© National Federation of Independent Business Research Foundation)
- Number of Employees Hired by the Temporary-Help Industry (U.S. Bureau of Labor Statistics)
- Ratio of Involuntarily Part-time to All Part-time Workers (BLS)
- Job Openings (BLS)**
- Industrial Production (Federal Reserve Board)*
- Real Manufacturing and Trade Sales (U.S. Bureau of Economic Analysis)**
*Statistical imputation for the recent month
**Statistical imputation for two most recent months
About The Conference Board
The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: To provide the world's leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States.
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