The Kansas City Fed Labor Market Conditions Index (LMCI) — Level of Activity Indicator measures the overall level of activity in US labor markets relative to historical norms. A positive value indicates that labor market conditions are above their long-run average, while a negative value signals conditions are below average — such as rising unemployment, falling labor force participation, or slower wage growth. The indicator is constructed from 24 distinct labor market datasets, including the unemployment rate, initial jobless claims, and labor force participation. Historically, sustained negative readings have coincided with US recessions (shaded bands). Data sourced from FRED (Federal Reserve Bank of St. Louis), series FRBKCLMCILA.