The
biggest obstacle to more hiring is the increase in labor
costs relative to the rate of price increases
Ken Goldstein, Labor Economist, The
Conference Board’s
In the last three months, help-wanted advertising declined in
all nine U.S. regions. Steepest declines occurred in the
Mountain (-15.4%), South Atlantic (-13.9%), and East South
Central (-11.7%) regions.
Says Ken Goldstein, The Conference Board’s Labor Economist:
“Hiring intentions have turned cautious as business executives
face the prospect of slower overall economic activity in the
second half of 2005. While the Coincident Economic Index, which
focuses on current economic conditions, continued to edge
higher, the Leading Economic Index fell for the fourth time in
the last five months. The biggest obstacle to more hiring is the
increase in labor costs relative to the rate of price
increases.”
The Conference Board surveys help-wanted advertising volume
in 51 major newspapers across the country every month. Because
ad volume has proven to be sensitive to labor market conditions,
this measure provides a gauge of change in the local, regional
and national supply of jobs.
