2017 Economic Calendar
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Labor Market Conditions Index  
Definition
The Labor Market Conditions Index is an experimental indicator compiled by the Federal Reserve to track labor market activity. It is a broad composite with 19 components.

Why Investors Care
The Fed has a dual mandate from Congress — healthy job growth and low and stable inflation. This index goes beyond just looking at the unemployment rate and payroll jobs gains. It provides a very broad view of the labor market that the Fed watches for one of the two mandates. This index at times can affect Fed policy.

Importance
The labor market conditions index summarizes a wide range of labor market indicators. The Fed not only created this index but also watches it for interpreting the health of the labor market.

Interpretation
The labor market conditions index is by definition an index. Higher index numbers are positives and vice versa. The report focuses on the change in the index — how strong a plus change or a negative change. Plus indicates improving labor market conditions. But there is extreme detail with 19 components. Subcomponent detail can be important, depending on how many components are positive versus those that are negative or sluggish. A key feature of this report is that it pulls together many labor market indicators into one place.

Frequency
Monthly

Source
Federal Reserve Board of Governors.

Availability
This index is not an official report but is a Fed research department number. In general, the series is posted sometime after 10:00 a.m. Eastern Time on the first business day following the Bureau of Labor Statistics' monthly Employment Situation report. There is no exact timing of the report. On the rare occasion when source data are unavailable or delayed, the updated LMCI will be posted as soon as feasible. Additionally, in situations when the scheduled release falls during the FOMC communications blackout period (PDF), the updated LMCI will be posted after the blackout period has ended.

Coverage
Data are for the previous month. Data for June are released in July.

Revisions
Yes. The entire history of the LMCI may be revised each month. There are three sources of revisions — new data, revisions to old data and statistical regression to historical data each month which can change the entire historical series.


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