Jobless claims edge up, while worker productivity beats expectations |
| U.S. unemployment benefit claims rose slightly last week, with initial jobless claims increasing by 1,000 to 199,000 in the seven days to August 1st, according to the Labor Department. Despite the uptick, layoffs remain at historically low levels, indicating that the labor market continues to show resilience even as hiring slows. The four-week moving average of new claims declined to 198,750, while continuing unemployment claims, reported with a one-week lag, rose by 24,000 to 1.8m, suggesting some unemployed workers are taking longer to find new jobs. The Labor Department also reported that U.S. labor productivity rose at a stronger-than-expected annualized rate of 1.4% in the second quarter, exceeding economists' forecasts and reflecting improved output per worker despite slower labor force growth. Productivity increased 2.2% from a year earlier, while the labor share of output fell to a record low of 52.9%, suggesting companies are generating more output with relatively fewer labor costs. |
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