Jobs market in for weak spell

NEW YORK (Reuters) - The Conference Board said on Monday there was little reason to expect the U.S. labor market to recover in the months ahead after its jobs index fell in June to its lowest since late 2004.

The private business research group said its Employment Trends Index fell to 111.9 in June from May's revised 112.6. May's figure was originally reported as 113.7.

June's reading was the lowest since it hit 111.3 in September 2004, the Conference Board said.

"Most leading indicators of employment point to an even sharper deterioration in the labor market in the months ahead," said Gad Levanon, senior economist at the Conference Board.

"The steep decline of the employment trends index in recent months, and the fact that its weakness is spread throughout all of its components, does not leave much room for optimism."

The Conference Board launched its Employment Trends Index last month and publishes it on the Monday following each release of the U.S. Bureau of Labor Statistics monthly jobs report.

The latest Conference Board release largely mirrors the payrolls report the government delivered on Thursday. That report showed U.S. employers cut workers for a sixth straight month in June, the longest such streak since 2002.

Financial markets were little moved on the release.

Stocks were higher on Wall Street with the help of stronger overseas equity markets and lower inflation worries as oil prices retreated from last week's record highs. The dollar was broadly higher in quiet trading.

U.S. government bonds, which usually benefit more during weak economic times, were slightly higher in price.

(Reporting by Burton Frierson; Editing by Theodore d'Afflisio)