There were a few modest weak spots in the report. First, average hourly earnings were unchanged for a second month. Second, the average work week failed to increase. Although this was expected by the consensus, worker hours remain below pre-recession levels and should be gradually rising over time. Third, the average duration of unemployment rose to a new high of 39.0 weeks (note that a methodological change at the start of this year lifted the mean duration of unemployment). Fourth, diffusion indexes reflecting the proportion of sectors with rising employment were generally soft.
And it’s rear view mirror