Labor Market Conditions Index is an economic indicator by the Federal Reserve Bank, which measures the general health of the labor market. It is considered a dynamic indicator because it takes into consideration various labor market indicators, 19 in total. Any reading above 0.0 is positive as it reflects improving condition in the labor market. In theory the reading of the index should have an inverse relation with the unemployment rate, and this has shown to be true as in 2017 the index has risen significantly, while the unemployment rate fell.
The United States Labor Market Conditions Index
United States Labor Market Conditions Index latest reading for the month of June 2017 was 1.5, lower than the forecast of 2.5, and the previous reading of 3.3. The long-term average for the Index and the period of years 1976-2017 is 0.42 Index Points, while the all-time high price was 32 Index Points during September of 1983, and the all-time low reading was -48.40 Index Points during April of 1980. For 2017, the Index peaked in April with a reading of 3.8 Index Points after four consecutive months of gains.
