A recent barometer of U.S. employment expectations showed that the average-at-best hiring that has been seen in recent months will most likely continue for the second and third quarters, and could even remain in place for the remainder of the year, Bloomberg reports.
According to the news source, the reading of job prospects in the U.S. rose last month for the first time in three months. The reading, which was the Conference Board's Employment Trends Index (ETI), increased 6 points to 111.76 - the highest measure since June 2008. This was also a 3-point gain compared to the same month last year.
"While the increase in the Employment Trends Index in May erased the small declines of the previous two months, overall, the growth in the ETI has remained weak," said Gad Levanon, director of macroeconomic research at the board. "Taken together with other recent indicators of economic activity, the ETI is suggesting that a significant improvement in employment growth is unlikely this summer."
The media outlet stated that of the eight parts of the survey that make up the Conference Board's index, seven rose, resulting in an overall increase. The readings included marked growth in the number of temporary workers companies are hiring, an increase in the number of job openings around the country and a larger number of employers who say they are struggling to fill certain positions.
The report also found that the Federal Reserve will decide on its future policy decisions based on how well the labor market improves in the near future. If hiring rates remain the same, the Fed says it will most likely keep its current monetary policy in place in an attempt to spur more job growth. The report, which is released on the first business day after the official government employment report, is typically regarded as a more accurate picture of the hiring environment in the country.