Output per hours worked, or U.S. productivity, continued to rise strongly in the fourth quarter of 2009 while the number of U.S. workers filing new claims for jobless benefits rose. The two statistics send different messages, the former that the economy’s expansion didn’t stop many employers from cutting labor costs and the latter that the labor market has yet to recover even with the economic expansion.
In addition, total claims lasting more than one week rose slightly.
The productivity gains should help prevent an outbreak of inflation, making the Federal Reserve more comfortable with keeping short-term interest near zero to support the economy so that unemployment can come down.
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