Labor market "conditions continue to improve," as the Federal Reserve Bank of Kansas City Labor Market Conditions Indicators (LMCI) increased to positive 0.04 in December from a revised negative 0.08 in November, according to the Bank.
This was the first time since June 2008 that the index has been positive, signaling above-average activity, the Bank said.
The momentum indicator grew to 1.1 from 0.97 in November.
A zero reading indicates the indicator is at its historical average.
The activity indicator rose 0.032 in the past half year, with the largest contributor coming from percent of firms planning to increase employment. Positive contributions were made by 17 variables, while 6 were negative, one was neutral.
The momentum indicator's largest contributor was initial jobless claims. Positive contributions were made by 17 variables, while 7 were negative.
