US Productivity Grows While Jobless Claims Rise, Keeping Labor Costs in Check and Supporting Fed's Inflation Fight
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U.S. worker productivity grew at a faster than expected 3.2% rate in Q4, helping keep labor costs contained and support the Fed's inflation fight
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First-time unemployment claims rose to a 2-month high, signaling the labor market is gradually losing momentum
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Unit labor costs rebounded at a 0.5% rate in Q4 after a 1.1% decline in Q3, rising 2.3% from a year ago
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Hourly compensation rose at 3.7% pace in Q4; moderation in costs moves Fed closer to 2% inflation target
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Jobless claims increased to 224,000 last week, the most since November; number of people on benefits rose to 1.898 million, also a 2-month high