April 3, 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 jumped by 178 thousand in March. But at the same time the nonfarm workweek declined 0.1 hour to 34.2 hours. It has been bouncing around in recent months between 34.2 and 34.3. Prior to the recession the nonfarm workweek was averaging 34.4 hours so it is only slightly shorter than it was five years ago.
The change in employment and hours worked are reflected in the aggregate hours index which dec;lined 0.2 in March to 116.2 after havintg fallen 0.1 in February. The aggregate hours index increasd 0.9% in the first quarter which, when combined with a moderate increase in productivity of 1.3% suggests GDP growth in the first quarter of something around the 2.2% mark. GDP rose 1.4% in the fourth quarter and presumably 2.2% in the first quarter. The economy continues to cruise along at a moderate pace.
The factory workweek was unchanged in March at 40.2 hours after havaing been unchanged in February. The manufacturing sector has been fairly steady in recent months..
Overtime hours were unchanged in March at 3.0 hours which is essentially where it has been for the past year.
Stephen Slifer
NumberNomics
Charleston, SC
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