The Kansas City Fed Labor Market Conditions Indicators (LMCI) suggest the level of activity and momentum were little changed in January. The level of activity was little changed at 0.61, remaining above its historical average. Meanwhile, the momentum indicator was little changed at 0.10.
The first column of the table below shows the labor market variables that made the largest contributions to the 0.01 increase in the activity indicator this month. Overall, 11 variables made a positive contribution to the change in the activity indicator, five variables made no contribution, and eight variables made a negative contribution. The largest positive contributor to the change in the level of activity was flows from unemployment to employment (the job-finding rate). In January, 27.3 percent of workers who were previously unemployed found a job, up from 25.4 percent a month ago. This measure has been normalizing after falling in October and November of last year, likely due to hurricane-related effects. The largest negative contributor to the change in the level of activity was job leavers as a percent of the unemployed. In January, 13.2 percent of unemployed workers had voluntarily left their previous jobs, down from 13.8 percent in December 2024.
The KC Fed LMCI suggests the level of activity and momentum were little changed in January
The level of activity was little changed at 0.61, remaining above its historical average. Meanwhile, the momentum indicator was little changed at 0.10.