Saturday, April 4, 2009

Average Hours Worked Each Week Continues to Decline

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Data provided from the Bureau of Labor Statistics show that the Average Hours worked per week have hit an all time low of 32.2 hours per week (since records started in 1999)---This is down from 34.4 hours in 1999 and the near 34 hours per week prior to the current recession.

While a reduction in hours of just 1 hour per week doesn't sound like much, it is actually pretty significant, because it represents a 3% decline in time at the job---Many companies may find it easier to scale back everyones' hours rather than laying off a substantial chunk of the work-force... Another way to think of it is, that if the hours worked would have been kept constant, then the unemployment rate would likely have been 10% - 11% in March rather than the 8.5% unemployment rate that we've seen.

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