November’s flashy 321,000 jobs gain may have masked a slight slowing in labor market conditions, a report from the Federal Reserve Bank of Kansas City showed.
The bank’s labor market conditions indicators showed a slight decline in activity last month though a momentum measure remained high and unchanged.
Labor market activity had been strengthening for six straight months, but the November dip left it at -0.50 from October’s -0.45. This signal had tumbled to -2.00 in the wake of the Great Recession and has not yet returned to positive territory.
Momentum remained at 1.33 in November with support from 20 factors, such as improvements in expected job availability, initial claims for unemployment and the labor force participation rate.