The Kansas City Fed Labor Market Conditions Indicators (LMCI) suggest the level of activity declined, and momentum rebounded in April. The level of activity declined by 0.14, from 0.46 to 0.32, remaining above its historical average. The momentum indicator increased by 0.57, from -0.77 to -0.20. Following two months of sharp declines, momentum has retraced some of its losses, moving closer to its historical average.
The first column of the table below shows the labor market variables that made the largest contributions to the 0.14 decline in the activity indicator this month. Overall, seven variables made a positive contribution to the change in the activity indicator, three variables made no contribution, and 14 variables made a negative contribution. The largest positive contributor to the change in the level of activity was the net percent of firms planning to increase employment from the National Federation of Independent Business (NFIB) survey. In April, on net, 13 percent of firms planned to increase employment, up from 12 percent in March. The largest negative contributor to the change in the level of activity was the percent of firms with positions not able to fill right now (NFIB). In April, 34 percent of firms had job openings that they could not fill, down from 40 percent in March, suggesting some loosening in the labor market.
The KC Fed LMCI suggests the level of activity declined and momentum rebounded in April
The level of activity declined by 0.14, from 0.46 to 0.32, remaining above its historical average. The momentum indicator increased by 0.57, from -0.77 to -0.20.