Fed's Labor Market Conditions Index Falls

Payroll growth slowed in Friday's employment report as did the Fed's labor market conditions index, to plus 0.4 in January from a downward revised plus 2.3 in December (2.9 initially) and an upward revised plus 2.9 in November (2.8 initially). January's reading indicates the lowest level of labor market expansion since April last year and also reflects the climbing trends in jobless claims. One big positive for the labor market, however, is the falling unemployment rate, at a recovery low 4.9 percent in January.