Average Weekly Hours, Manufacturing

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Explore further current and historical data for Average Weekly Hours, Manufacturing and how it relates to Real GDP and Labor Cost Per Unit.

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Current and Historical Data for Average Weekly Hours, Manufacturing
Review the Average Weekly Hours, Manufacturing, by quarter at economagic.com

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Average Hours Worked For Production Workers and Real GDP: Annual Percent Change Relative To Same Period Last Year
This diagram illustrates the relationship between the change in the average number of hours worked per manufacturing employee, and the rate of economic growth. Recall that hours worked is a leading economic indicator. It is evident from this diagram that hours worked provides an excellent indicator of key turning points in the economy. The beginning of a recession is indicated by a decline in manufacturing hours worked. Likewise the end of all three recessions since 1980 are clearly marked by a sharp increase in the growth rate in hours worked per employee. GDP growth or contraction clearly lags slightly behind average hours worked as illustrated in the diagram. The recession in 2001 was indicated by a drop-off in average hours worked beginning in the third quarter of 2000. Continuing economic growth contributed to rising manufacturing hours worked throughout 2006.

 

Economagic.com provides a more complete collection of data for the following:
Average Weekly Hours Worked Per Manufacturing Employee I Real GDP

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Average Weekly Hours Worked For Production Workers and Unit Labor Cost- Manufacturing: Annual Percent Change Relative to Same Period Last Year
This diagram illustrates the relationship between the change in the average number of hours worked per manufacturing employee, and the rate of growth in unit labor costs (wages plus benefits per unit of manufacturing output). One would expect that in the months following a substantial rise in hours worked, overtime pay and rising wage demands by workers will tend to push up unit labor costs. This pattern is evident in the data. Unit labor costs can also rise during recessions when output declines faster than labor costs. For example, firms may be hesitant to lay off experienced workers despite slowing demand for goods and services. Unit labor costs fall when labor productivity is growing rapidly relative to earnings, as was the case in the latter half of the 1990's. One can see in the diagram that unit labor costs rose sharply during the early stages of the recession of 2001, while at the same time hours worked declined. In recent years unit labor costs have fluctuated widely due to periods of accelerating labor productivity, rising healthcare benefit costs, and the increasingly important role of globalized labor markets.

Economagic.com provides a more complete collection of data for the following:
Average Weekly Hours Worked Per Manufacturing Employee I
Labor Cost Per Unit of Manufacturing Output