What is the average workweek?

The average weekly hours of production and nonsupervisory employees, commonly called the average workweek, is reported monthly by the Bureau of Labor Statistics as part of the employment situation report. For private nonfarm payrolls, it typically ranges between 33 and 35 hours per week. This seemingly mundane statistic is one of the most valuable leading indicators in economics because firms adjust hours worked before they adjust headcount.

When demand begins to slow, the first thing most employers do is reduce overtime and cut hours. Hiring is expensive and layoffs are costly and disruptive, so trimming hours is the path of least resistance. A declining average workweek therefore signals weakening demand before it shows up in payroll numbers. Conversely, when demand picks up after a downturn, firms first increase existing employees' hours before committing to new hires. A rising workweek is an early sign that hiring will follow.

The Conference Board includes the average workweek in manufacturing as one of the ten components of its Leading Economic Index (LEI). Manufacturing hours are particularly sensitive to business cycles because manufacturing firms face direct demand fluctuations and have more flexibility to adjust production schedules. A decline in manufacturing hours below 40.5 hours per week has historically been a warning sign for broader economic weakness.

Beyond its leading indicator properties, the average workweek directly affects aggregate income. Total labor income equals hourly wages times hours worked times the number of workers. Even if the number of employed people holds steady, a reduction in average hours reduces total income and therefore consumer spending power. During the 2020 recession, the average workweek initially plunged before rebounding sharply, then rose above pre-pandemic levels as firms struggled to hire enough workers and squeezed more output from existing staff. Monitoring hours worked provides a real-time window into the intensity of labor demand, complementing the jobs and wages data that receive more headlines.