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Another warning signal for the US economy.
The labor market conditions indicators from the Federal Reserve Bank of Kansas City (LMCI) have again declined, confirming all signals that a recession in the US economy may become inevitable if this trend continues.
This indicator assesses both the level and dynamics of the labor market based on 24 key variables, such as the unemployment rate, job creation, wage growth, the number of job vacancies, and initial claims for unemployment benefits.
Being on positive territory, it signals a healthy labor market, demonstrating results above its historical average. However, considering the recent consecutive declines, the message is clear: the labor market is weakening, indicating a broader economic slowdown.
If the labor market — one of the main pillars of the economy — continues to lose strength, the risk of recession will significantly increase.
Be vigilant. The market is starting to take this scenario into account.