Final answer:
The term Full-time Equivalent (FTE) is a measure of an employee's workload compared to that of a full-time worker. It helps quantify the labor contribution of part-time and contract workers in full-time terms. According to U.S. standards, a full-time work week is typically around 40 hours.
Step-by-step explanation:
The term full-time equivalent (FTE) is a measure of an employee's workload in terms of an equivalence to a full-time employee's workload. In other words, it's a way to quantify work done by part-time and contract workers in terms of full-time hours. For instance, if two part-time employees work 20 hours each per week, their combined FTE would be 1.0, since together they complete the workload of a full-time worker who works 40 hours per week.
According to the Bureau of Labor Statistics, U.S. workers averaged 38.5 hours per week in 2013, and 38.6 hours per week in 2014, with full-time workers averaging 42.5 hours per week. This demonstrates that the FTE would be based on the expected full-time hours which are typically around 40 hours per week.