The Conference Board’s US employment trends index increased in January to a reading of 127.86, up from December’s downwardly revised reading of 127.17. The January reading is up 7.6% from the same month a year ago.

“The employment trends index suggests that strong job growth is likely to continue through the first half of the year,” said Gad Levanon, managing director of macroeconomic and labor market research at The Conference Board. “As a result, wage growth will accelerate, thereby increasing pressure on profitability which is already suffering from low productivity growth and the strong dollar.”