Help-Wanted Index Drops During June

The number of help-wanted ads in U.S. newspapers edged downward in June, another sign that the recovery is sluggish, a business research group said Sunday.

The Conference Board’s help-wanted advertising index dropped one point, to 92, from May’s revised figure. The index has been stuck at about the same level since the beginning of the year.

That, coupled with high unemployment rates the past few months, indicates stagnation, said Conference Board economist Ken Goldstein.

“We’re at a standstill. While labor market indicators are not declining, they are showing very few signs of improvement,” Goldstein said.

The monthly index, calculated on a 1967 base of 100, is based on ad volume in 51 major newspapers across the country. It is considered a good barometer of the supply of jobs.

The results are consistent with last week’s Conference Board consumer confidence index, which reflected a deeply pessimistic outlook for the next six months, and the gross domestic product, which rose at a slow 1.4% in the second quarter.

“Since it’s employers who place the ads, there’s a sense that, not only is there not enough business now, but there probably will not be enough over the next six months to do any substantial hiring,” Goldstein said.

Employment is a lagging economic indicator since employers must see signs of recovery before hiring. July’s unemployment figures, due out Friday, will be the next big influence on the help wanted index.