ISM Manufacturing Employment Index



What is the ISM Manufacturing Employment Index?

The ISM Manufacturing Employment Index is a component of the Manufacturing Purchasing Managers Index and reflects employment changes from industrial companies. A monthly survey is conducted with responses from supply managers about their employment situation. Responses can provide insight into labor-management plans, hiring increases or struggles, employee turnover, retirements, and other trends impacting employment. The ISM Manufacturing Employment Index is considered a diffusion index and accounts for 20% of the total manufacturing PMI calculation.


Why is the ISM Manufacturing Employment Index important?

The trends highlighted in the ISM Manufacturing Employment Index can provide critical insight into the health of the manufacturing sector. Additionally, it can show areas of strength and weakness in the current employment situation. On a larger scale what’s happening in the manufacturing industry can highlight the health of the overall economy. Growth in the manufacturing industry usually reflects a positive labor market overall.


What should you do?

If you’re looking for a better understanding of the Manufacturing PMI, employment trends, and the health of the economy, it is important to follow the ISM Manufacturing Employment Index. Majestic’s CORE Report follows the ISM Manufacturing Employment Index; along with other indicators every week to see where the market stands.