WASHINGTON - The tally of newly laid-off workers seeking unemployment benefits fell unexpectedly for the fifth straight week, a hopeful sign that the job market is slowly improving. And, productivity was up in the third quarter by the largest amount in six years.
The Labor Department says first-time claims for unemployment insurance dropped by 5,000 to a seasonally adjusted 457,000, the lowest total since the week of Sept. 6, 2008.
Wall Street economists expected an increase, according to a survey by Thomson Reuters.
A Labor Department analyst says the closing of state unemployment offices for last week's Thanksgiving holiday was responsible for some of the decline.
The number of people claiming benefits for more than a week rose by 28,000 to 5.5 million. Analysts had expected a decline.
PRODUCTIVITY
Productivity surged in the third quarter by the largest amount in six years while labor costs fell. While that indicates inflation is remaining under control, it also signals that workers' wages are getting squeezed, raising doubts about the durability of the economic recovery.
The Commerce Department said Thursday productivity was rising at an annual rate of 8.1 percent in July-September period, the biggest jump since 2003, while unit labor costs were falling at a 2.5 percent rate.
The productivity gain was revised down from an initial estimate of 9.5 percent made a month ago while the drop in unit labor costs was less than the 5.2 percent plunge first reported. The revisions were larger than economists had expected.
Sunday
June 29th, 2025
4:58AM
