American companies have been hiring lots of new employees this year, making economists hopeful that the country will not experience a recession anytime soon. Still, other experts claim that increased hiring is not as reliable of an economic indicator as some think. The video below explains how total working hours can provide a more detailed picture of the country’s economic health and why fears of an incoming recession could be justified.
Questions:
- How do economists use “hours worked” as an indicator for an upcoming recession?
- If you are currently working, have your hours increased or decreased at your job recently? What do you think this could tell about your company’s financial health?