Data released today on The Conference Board Employment Trends Index show the measure fell to a reading of 109.61 in July from 110.58 in June. Still, the measure does not point to “broader deterioration.”

“The ETI fell for the second consecutive month in July, continuing the downward trend observed since the index peaked in March 2022,” Mitchell Barnes, economist at The Conference Board, said in a press release. “July’s decline in the ETI is consistent with the normalization that is occurring across labor market metrics, including the ongoing moderation of payroll gains.”

Barnes continued, “The ETI remains above the prepandemic trend but is steadily reverting toward 2019 and early-2020 levels. Thus, the signals of softening that have emerged so far remain well within historic ranges and do not portend broader deterioration.”

He also noted Aug. 2’s jobs report from the US Bureau of Labor Statistics provided the softest data to date as monthly payroll gains fell to 114,000. The unemployment rate also ticked up to 4.3% in July from 4.1% in June.

“The labor market is clearly cooling from its torrid post-pandemic pace, yet the trend of labor hoarding continues, despite rising labor costs,” Barnes said.