July 2, 2026
In any given month employers can boost output by either additional hiring workers or by lengthening the number of hours that their employees work. Payroll employment climbed by 57 thousand in June. At the same time the nonfarm workweek was unchanged at 34.3 hours. Prior to the recession the nonfarm workweek was averaging 34.4 hours so it is only slightly shorter than it was six years ago.
The change in employment and hours worked are reflected in the aggregate hours index which rose 0.1% in June to 116.8 after gaining 0.1% in May and 0.3% in April. This means that the index rose 1.3% in the second quarter which, when combined with a likely 1.2% increase in productivity should produce GDP growth of 2.5% in the second quarter.
The factory workweek fell 0.1 hour in June to 40.3 after having been unchanged in May. The manufacturing sector has turned upwards in recent months after more than a year of being relatively unchanged.
Overtime hours rose 0.1 hour in June to 3.2 hours after having risen 0.1 hour in May Manufacturers typically work existing employees longer hours for a while prior to boosting the pace of hiring. The manufacturing sector seems to be gathering momentum.
Stephen Slifer
NumberNomics
Charleston, SC
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