The Conference Board's employment trends index fell to 105.3 in October from September's reading of 107.2. Year over year, October's reading is down 12%.

"The sharp decline in the Employment Trends Index in recent months suggests we will experience even greater deterioration in the labor market in the months ahead, and that the unemployment rate will continue to rise sharply well into 2009," said Gad Levanon, senior economist at The Conference Board. "The economic developments of the last two months made it clear to businesses that demand for goods and services in the U.S. is declining, and businesses are responding by aggressively slashing their payrolls."

The index aggregates eight labor-market indicators into a composite index.