Labor market conditions suggest the level of activity declined and momentum remained high in June
The Kansas City Fed Labor Market Conditions Indicators (LMCI) suggest the level of activity decreased and momentum remained high in June. The level of activity indicator decreased in June from 0.50 to 0.33, while the momentum indicator was little changed at 1.30.
The table in the current release shows the five labor market variables that made the largest contributions to the change in the activity indicator over the last six months and the five variables that made the largest positive contributions to the momentum indicator in June 2017. The activity indicator increased 0.05 over the last six months. The largest contribution came from an increase in the job availability index (Conference Board). Thirteen variables made a positive contribution, and eleven variables made a negative contribution. The momentum indicator was 1.3 in June, where the largest contributor to momentum was initial claims. Eighteen variables made a positive contribution, and six variables made a negative contribution.