Labor Market Conditions Index Remains In Contraction

Employment has been the economy's central strength but has not been in the positive column for the labor market conditions index which remains in contraction for a 4th straight month, at minus 0.9 in April. Still, this is an improvement from March's minus 2.1, a month when payroll growth and the participation rate were stronger but not other data that are tracked in this composite including the 12-month reading for average hourly earnings or the jobs-hard-to-get subcomponent of the consumer confidence report which both showed strength in April. The index, experimental in nature, is a broad composite of 19 separate indicators and, as yet at least, is rarely cited by policy makers.