Journal Article
KC Fed LMCI Suggests Recent Inflation Is Not Due to the Tight Labor Market
Glover, Andrew; Mustre-del-Rio, Jose; Pollard, Emily (2021-10-20)
A tight labor market tends to raise wages and lower unemployment, but an overly tight labor market can cause inflation. Labor market momentum, as measured by the Kansas City Fed Labor Market Conditions Indicators (LMCI), can signal whether the current level of activity in labor markets is inflationary.
Economic Bulletin , Issue October 20, 2021 , Pages 4

Journal Article
KC Fed LMCI Implies the Labor Market Is Closer to a Full Recovery than the Unemployment Rate Alone Suggests
Glover, Andrew; Mustre-del-Rio, Jose; Pollard, Emily (2021-10-19)
By consolidating information from a broad range of labor market variables, the Kansas City Fed Labor Market Conditions Indicators (LMCI) provide a consistent gauge of labor market tightness. Adjusting the unemployment rate to incorporate information from the LMCI suggests the labor market is closer to a full recovery than the unemployment rate alone implies.
Economic Bulletin , Issue October 19, 2021 , Pages 3

Journal Article
The KC Fed LMCI Momentum Indicator Suggests Monetary Policy Is Beginning to Weigh on Labor Markets
Pollard, Emily; Mustre-del-Rio, Jose (2023-02-03)
The Federal Open Market Committee has been quickly raising the federal funds rate to lower inflation. However, services inflation remains high, supported by a tight labor market with high wage growth. Recent readings in the LMCI momentum indicator suggest monetary policy tightening is beginning to weigh on labor markets, which may eventually lead to lower services inflation and lower inflation overall.
Economic Bulletin , Issue February 3rd, 2023 , Pages 4