The press has focused on weak job growth and largely ignored growth in hours worked.

A recent report by David Malpass of Encima Global had a good chart illustrating the trend and relationship of aggregate weekly hours worked (a combination of the # of workers and hours worked) and GDP growth.  The red line in the following chart shows that hours worked is growing at the best rate in 5 years.  It is instructive to note the indicator is much stronger than in 2010 when the market was last fearful of an economic slowdown.  More hours worked logically leads to more workers hired.  Jeb Terry, Sr. June 14, 2011

Aberdeen Investment Management – a guide service for micro-cap technology investment

Leave a Reply

Your email address will not be published. Required fields are marked *