Job growth is expected to slow in the coming months as Covid-19 cases rise in the US, The Conference Board reported today.
Its Employment Trends Index rose to a level of 95.57 in October from 96.33 in September; however, that is the smallest increase in the index since May. The index also remains down 11.1% from last October.
“Strong employment gains in recent months brought the unemployment rate to 6.9%. But the number of new Covid-19 cases is rising and the pandemic’s relentlessness may potentially lead to governments enacting additional restrictions on mobility and slower consumer spending,” said Gad Levanon, head of The Conference Board Labor Markets Institute. “As a result, The Conference Board expects job growth to slow in the coming months, leading to a slower decline in the unemployment rate.”
The Conference Board also announced that October’s Employment Trends Index incorporates a comprehensive benchmark revision, including a methodological change as well as revisions of standardization factors. The methodology change moves the index from a simple monthly percent change methodology to a symmetric monthly change methodology.