The Conference Board's Employment Trends Index Rose in December

By Xavier Fontdegloria

An index that measures employment trends in the U.S. increased in December, suggesting that the labor market continued to strengthen over the month.

The Conference Board Employment Trends Index rose to 116.63 in December from a revised 115.64 in November, data released Monday showed.

The indicator signals that job growth is likely to be strong in 2022, said Gad Levanon, head of The Conference Board Labor Markets Institute.

The data follow Friday's employment report from the Bureau of Labor Statistics, which showed the U.S. labor market added 199,000 jobs in December, and that the unemployment rate fell to 3.9%.

The Covid-19 Omicron variant could temporarily slow job creation in the very near term, with hiring in in-person services such as restaurants, hotels or personal care likely being hit the most, Mr. Levanon said.

Moreover, an increasing number of sick or quarantined employees will force businesses to operate at lower capacity, dampening overall economic activity, he said. "Labor shortages continue to be severe and will likely remain so going forward," he said.

The increase in the Employment Trends Index in December was supported by positive contributions from six of the eight components it is formed of, which are initial claims for unemployment insurance; the ratio of involuntarily part-time to all part-time workers; job openings; industrial production; real manufacturing and trade sales; and the percentage of firms with positions not able to fill right now.

The indicators which contributed negatively to the index are the number of temporary employees, and the percentage of respondents who say they find jobs hard to get, the report said.

Write to Xavier Fontdegloria at [e-mail]

(END) Dow Jones Newswires

01-10-22 1031ET