Answer to Question #88111 in Microeconomics for Muhammad Yasir

Question

Why have average hours worked per week declined?

Answer 1

The number of hours that an employee works to accomplish an economic activity within a week defines the average hours worked per week. According to Howe (2016), the decline in average hours worked is due to the decrease in Labor Force Participation (LFP) among prime age. Prime age identifies the working population that includes people aged 25 to 54 years. The decline in LFP is not due to unemployment rate rather it is due to generational issues. Howe (2016) notes that the current working generation does not identify working as a social role since majority of the prime age prefer spending less time on conventional jobs but more on non-marketplace activities. Additionally, the current prime age is replacing formal economic activities with informal arrangements (Howe, 2016). For example, instead of hiring movers, the generation is asking friends on Facebook to help in moving. This has led to more transactions outside the market leading to more withdrawal from the labor market, therefore resulting to a decline in average hours worked per week.

 

Reference

Howe, N (2016) Why Americans Are Working Less. Retrieved from: https://www.forbes.com. Access on 18^th April 2019.