The Kansas City Fed Labor Market Conditions Indicators (LMCI) suggest the level of activity was little changed and momentum accelerated in November. The level of activity was little changed at 0.42, and it remains above its historical average. Meanwhile, the momentum indicator increased by 0.24 in November, from 0.00 to 0.24.
The first column of the table in the current release shows the labor market variables that made the largest contributions to the 0.002 decrease in the activity indicator this month. Overall, 11 variables made a positive contribution to the change in the activity indicator, two variables made no contribution, and 11 variables made a negative contribution. The largest positive contributor to the change in the level of activity was the percentage of firms planning to increase employment (NFIB). In November, 18 percent of firms reported plans to increase employment, up from 15 percent a month ago. The largest negative contributor to the change in the level of activity was flows from unemployment to employment (the job-finding rate). In November, 21.3 percent of workers who were previously unemployed found a job, down from 24.1 percent a month ago. While this rate has been gradually declining since the second half of 2022, the declines have been abnormally large the last two months, potentially reflecting the difficulty in tracking individuals across consecutive months during severe weather events such as hurricane Milton.
The KC Fed LMCI suggests the level of activity was little changed and momentum accelerated in November
The level of activity was little changed at 0.42, and it remains above its historical average.