A pair of labor-market indicators released Monday portray a labor market that’s still in pretty good shape, even after a report from the government showed about 50,000 fewer jobs created than forecast.
The Conference Board’s employment trends index rose 0.7% in May, and 6.4% from a year ago. The index aggregates eight labor-market indicators in an effort to show underlying trends more clearly.
Seven of those eight components rose in May, the Conference Board said.
“Employment will likely grow fast enough to continue tightening the labor market,” said Gad Levanon, chief economist, North America for the Conference Board.
Meanwhile, the employment index in the Institute for Supply Management services index shot up 6.4 points to 57.8%, well above the 50% mark indicating growth and the strongest reading in close to two years. Fifteen industries reported increased employment, and just one industry reported decreased employment.
What the ISM services employment index jump may represent is a reversion to solid growth after two previous readings in the 51% range.
The Labor Department on Friday reported that growth in the services sector slowed to 131,000 from 154,000 in April, but that followed a weak 42,000 in March.
Overall U.S. jobs growth slowed to 138,000 from 174,000 in April.
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