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KC Fed LMCI Implies the Labor Market Is Closer to a Full Recovery than the Unemployment Rate Alone Suggests

Author

Listed:
  • Andrew Glover
  • Jose Mustre-del-Rio
  • Emily Pollard

Abstract

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.

Suggested Citation

  • Andrew Glover & Jose Mustre-del-Rio & Emily Pollard, 2021. "KC Fed LMCI Implies the Labor Market Is Closer to a Full Recovery than the Unemployment Rate Alone Suggests," Economic Bulletin, Federal Reserve Bank of Kansas City, issue October 1, pages 1-3, October.
    • Handle: RePEc:fip:fedkeb:93177
    as

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    File URL: https://www.kansascityfed.org/documents/8462/eb21glovermustredelriopollard1019.pdf
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    References listed on IDEAS

    as
    1. Mortensen, Dale & Pissarides, Christopher, 2011. "Job Creation and Job Destruction in the Theory of Unemployment," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 1-19.
    2. Diamond, Peter A, 1982. "Aggregate Demand Management in Search Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 881-894, October.
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    Cited by:

    1. Andrew Glover & Jose Mustre-del-Rio & Emily Pollard, 2021. "KC Fed LMCI Suggests Recent Inflation Is Not Due to the Tight Labor Market," Economic Bulletin, Federal Reserve Bank of Kansas City, issue October 2, pages 1-4, October.

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    More about this item

    Keywords

    Labor Market; Unemployment; Labor Market Conditions Indicators (FRB Kansas City LMCI); COVID-19; Pandemic;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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