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How Much Slack Remains in Resource Utilization?

This memo evaluates the extent of economic and labor market slack in mid-2014 by comparing the FRB staff's unemployment rate gap with a variety of alternative measures and indicators.

Updating the Labor Market Conditions Index

Monthly updates of the LMCI were discontinued on August 3, 2017

Assessing the Change in Labor Market Conditions

The labor market conditions index (LMCI), a dynamic factor model of 19 monthly indicators, appears to be a useful tool for assessing the change in labor market conditions based on a broad array of information.

Why is Involuntary Part-Time Work Elevated?

Continued cyclical improvement in the labor market will put downward pressure on involuntary part-time work, but secular trends may augur structurally higher part-time employment.

Assessing Conditions in the Labor Market

Although the unemployment rate is the arguably the best single summary indicator of the labor market, it is important to consider additional indicators for a comprehensive assessment of current conditions and the future trajectory.