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