January’s blockbuster jobs report shocked Wall Street and defied predictions of a cooling labor market. But the headline number doesn’t paint the entire picture of the US economy.
Yes, the labor market grew at a much faster pace last month than forecast, but one key metric— average hours worked— declined, a trend economists say could be worrisome for the economy, since it could indicate changes in hiring trends.
“Companies that are hiring or keeping their employees are reducing their hours. Hours worked have declined in a way that you typically see around a recession,” Lakshman Achuthan, co-founder of Economic Cycle Research Institute, told Yahoo Finance Live.
A perfect example: Retail. The sector’s challenging landscape amid a shift in consumer buying habits has forced companies to make tough choices. Average weekly hours fell to 29.1 in January from 30.2 a year ago,…
