(MENAFN) According to the Conference Board, a New York-based research group, the US Employment Trends Index (ETI) experienced a decline in April, signaling potential challenges for employment growth. The index, which serves as a leading composite indicator for employment, dropped by 0.91 points to 111.25 last month. Additionally, the figure for March was revised slightly downward to 112.16 from 112.84.
Will Baltrus, an associate economist at the Conference Board, highlighted the implications of this decline, noting that it could portend a slowdown in employment growth during the latter half of 2024. Baltrus pointed out that the ETI has been on a downward trajectory since reaching its peak in March 2022, with April's figures continuing this trend.
Despite the decline, it's worth noting that the index still remains above its pre-pandemic levels. Baltrus suggests that while aggregate job losses are less likely, a deceleration in employment growth could be anticipated.
The latest figures on job growth in the US, released on Friday, added further context to the discussion. April saw a total of 175,000 jobs added, a figure significantly lower than expectations. This shortfall has prompted speculation that the Federal Reserve might opt to cut interest rates sooner rather than later, as a means to stimulate economic activity and address concerns about employment.
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