Wednesday, March 13, 2013

Workweek Tying Longest Since WWII Spurs Hiring at U.S. Factories

Extremely long factory work weeks seen recently caused the creation of 52,000 new jobs in manufacturing.  Instead of paying so many workers time and a half, it has made more sense to hire additional workers.  Right now, we are seeing the strongest U.S. auto industry since 2007.  New home sales have also jumped to their highest level since the summer of 2008.  In February, production workers averaged 41.9 hours a week, with the record being 45.4 hours a week in the winter of 1944.  This necessity for new workers was a major factor in bringing the Unemployment Rate to the four-year low of 7.7%.  If demand stays steady, this increase in demand for workers may continue as they are forced to hire for future needs.  Along with additional job openings, the Labor Department also reported that employers in January fired the fewest workers since tracking of this data began twelve years ago.  Also as a result of higher demand, auto suppliers are also seeing a need for more employees.
This article implies that consumer confidence is on the rise and that the unemployment rate will continue to fall.  However, while Ohio's unemployment rate is below the national average, it saw an increase in January.

http://www.bloomberg.com/news/2013-03-13/workweek-tying-longest-since-wwii-spurs-hiring-at-u-s-factories.html

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