The Kansas City Fed Labor Market Conditions Indicators (LMCI) suggest the level of activity declined modestly and momentum remained high in November. The level of activity indicator declined modestly in November from 0.98 to 0.89, while the momentum indicator was little changed at 1.27.
The table in the current release shows the five labor market variables that made the largest contributions to the increase in the activity indicator over the last six months and the five variables that made the largest positive contributions to the momentum indicator in November 2018. The activity indicator increased 0.01 over the last six months. The largest contributor to the level of activity was the percent of firms planning to increase employment (NFIB). Thirteen variables made a positive contribution, one variable made no contribution, and 10 variables made a negative contribution. The momentum indicator was 1.27 in November, where the largest contributor to momentum was initial claims. Seventeen variables made a positive contribution, and seven variables made a negative contribution.