The U.S. employment market is expected to see an increase in job opportunities in the coming months, according to the latest data from The Conference Board’s Employment Trends Index. In July, the index reached 115.45, surpassing June’s figure of 113.56, indicating a positive acceleration in employment trends.
Senior economist at The Conference Board, Selcuk Eren, highlighted that despite a slight decline in the index since its peak in March 2022, it remains considerably higher than pre-pandemic levels. This suggests that job growth will persist, albeit at a potentially slower pace.
Eren also noted the sustained strength of the labor market and significant wage growth. He anticipates that these factors will prompt the Federal Reserve to raise interest rates once more. These adjustments are part of the central bank’s ongoing effort to curb concerns over inflation.
While higher interest rates are expected to have an impact on job numbers, Eren predicts that any job losses resulting from these changes will likely be felt from early next year onwards.
The Employment Trends Index provides valuable insights into employment conditions in the U.S., combining eight key indicators. Four of these indicators experienced growth in July, further supporting the notion of future job increases. Additionally, shifts in the index serve as indicators of potential changes in job numbers over the short term.
Recent data from the Labor Department reveals that while there has been a slight increase in unemployment filings, the overall labor market remains resilient.