The US labor market weakening under the surface: The Kansas City Fed Labor Market Conditions Index fell to 0.26 points in May, the lowest since April 2021. This index measures the job market strength based on 24 indicators. As a result, the gauge has now declined for 3 consecutive years. In previous economic cycles, this metric has been a leading indicator for the US unemployment rate. The recent decline suggests that more job losses are likely coming over the next several months. Labor market weakness is coming.