Shorter Workweek Is Canary of the Labor Market: Conor Sen

Corporate America has greeted 2024 with a run of job-cut announcements. The reductions, though modest, seem puzzling at a time when the stock market is flirting with all-time highs and real gross domestic product growth continues to be healthy. Think of this as the latest phase in the economy finding a new post-pandemic normal.

A rapid moderation in inflation over the past year has led consumers to begin feeling more optimistic, while markets and the Federal Reserve predict lower policy rates this year. One constituency that isn’t necessarily benefiting is corporations, and that’s showing up in the labor market ...