The Kansas City Fed Labor Market Conditions Indicators (LMCI) suggest the level of activity declined slightly, and momentum was little changed in May. The level of activity declined by 0.05, from 0.31 to 0.26, though it remains above its historical average. Meanwhile, the momentum indicator was little changed at -0.24.
The first column of the table below shows the labor market variables that made the largest contributions to the 0.05 decline in the activity indicator this month. Overall, eight variables made a positive contribution to the change in the activity indicator, six variables made no contribution, and 10 variables made a negative contribution. The largest positive contributor to the change in the level of activity was the expected job availability index from the Conference Board. In May, the expected job availability index came in at 92.6, an improvement from 81.5 in April. However, the reading remained below 100, indicating that more respondents expect fewer jobs in six months than expect more jobs. The largest negative contributor to the change in the level of activity was job leavers as a percent of the unemployed. In May, 9.8 percent of unemployed workers had voluntarily left their previous jobs, down from 11.8 percent in April, and continuing a steady decline since December 2024.
The KC Fed LMCI suggests the level of activity declined slightly and momentum was little changed in May
The level of activity declined by 0.05, from 0.31 to 0.26, though it remains above its historical average. Meanwhile, the momentum indicator was little changed at -0.24.