June 6, 2025
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 139 thousand in May In the past three months the average increase has been 135 thousand.
The nonfarm workweek was unchanged in May at 34.3 hours after having also been unchanged in April Prior to the recession the nonfarm workweek was averaging 34.4 hours so it is roughly the same as was five years ago.
The changes in employment and hours worked are reflected in the aggregate hours index which rose 0.1% in May to 117.1 after climbing 0.2% in April. This index appears to be on track for an increase of 2.3% in the second quarter. We are currently anticipating GDP growth of 5.0% in the second quarter following the 0.2% drop in the first quarter, and we are expecting GDP growth of 2.5% for the year as a whole.
The factory workweek rose 0.1 hour in May to 40.1 after having declined 0.2 hour in April. The manufacturing sector has been fairly steady in recent months.
Overtime hours were unchanged in May at 2.9 hours after having been unchanged in April.
Stephen Slifer
NumberNomics
Charleston, SC
Follow Me