The labour market appears to have come storming back in September, with employment increasing by almost 70,000 in a single month. Under the surface, however, labour market conditions remain weak. The new jobs added over the past 12 months are predominantly part-time positions going to older workers. In contrast, prime-age employment is falling. Under those circumstances, it is not surprising that average weekly hours worked have fallen and the growth rate of average hourly earnings has slowed. The upshot is that even though employment is just holding up, income growth appears to be slowing.
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