Job Market Growth Hovers Near 2-Year Lows, Fed’s Labor Market Index Shows

Despite the utter exuberance at Friday’s payrolls data -which ‘everyone’ saw as nothing but indicative of escape velocity and utopia in America’s near future – the Fed’s new multifactor model of the US jobs market shows growth sliding to just 2.9% MoM. This is the almost the slowest growth since Aug 2012.

 

 

 

As a reminder,

The Federal Reserve Labor Market Conditions Index is calculated as a weighted average based on 19 monthly labor market indicators togauge improvements in the labor market.

 

The 19 labor market variables used are:

 

the unemployment rate, the labor participation rate, part-time for economic reasons, private payroll employment, government payroll employment, temporary help employment, average weekly hours, average weekly hours of persons at work, the average hourly earnings, the composite help-wanted index, the hiring rate, the transition rate from unemployment to employment, the insured unemployment rate, job losers unemployed less than 5 weeks, the quit rate, job leavers unemployed less than 5 weeks, the Conference Board Survey on job availability, The NFIB Survey on hiring plans and difficulty to fill a job.

 

The Federal Reserve does not report the actual index but the seasonally adjusted average monthly change.

*  *  *




via Zero Hedge http://ift.tt/1u9NcDS Tyler Durden

Leave a Reply

Your email address will not be published. Required fields are marked *