A report from the Conference Board showed the index of employment trends United States, representing a set of labor market indicators, fell again in April after he recorded a sharp drop the previous month.
The index of employment trends declined in April, up 43.43 points compared to 57.87 points in March (revised from 60.39). Meanwhile, compared with the same period of 2019 index shows a decline of 60.2%.
Recall that the index comprises 8 indicators of the labour market. In particular, the number of these indicators included the number of applications for unemployment benefits and the number of ads on employment reported by the Bureau of labor statistics of the United States, as well as indicators of industrial production, calculated by the fed. The index is designed to weed out confounding factors and volatility of monthly labor market indicators, to more clearly demonstrate trends. In the Conference Board reported that the index in April was caused by a negative contribution 8 out of 8 components.
«Index employment trends index fell sharply in March and April, and all components of the index moved far into negative territory. Job cuts of this magnitude is unprecedented. The main goal of Economics is to provide the delicate balance between return to work and minimizing the spread of the virus. Millions of employees of enterprises that were closed will be back to work in the coming months, States will begin to re-open its economy. However, for many companies, mass layoffs will continue in the coming months as they attempt to adapt to the loss of income by reducing costs. Starting in may or June, we expect the number of employees returning to work will be greater than the number laid off or dismissed. This will mean that the unemployment rate will begin to decline. However, at the end of the year, the labor market may still be in a worse condition than it was at the peak of the great recession», — said Gad Levanon, head of the Institute of the labor market, the Conference Board
Information-analytical Department TeleTrade