FRED has just added two labor market indicators from the Kansas City Fed. They’re computed from a collection of 24 times series related to the labor market. Two principal components, which are extracted from this data set using factor analysis, are displayed in the graph above: They describe about 80% of what is happening in the labor market. When both components are above zero, the labor market is looking good. When both are below, there is definite cause for concern.
Suggested by Christian Zimmermann.