From The Dismal Scientist: Thursday’s productivity numbers came in better than expected. Nonfarm productivity grew 1.1% (SAAR) in the third quarter, despite the contraction in GDP. Unit labor cost growth was stronger than expected, up 3.6%. Despite the strong growth in unit labor costs, inflation pressures from the labor market are not a concern.

Although the report declined 2.5% from the second quarter, U.S. Productivity has had to maintain its positive efficiency by continuing to cut jobs and employee hours to supplement the lack of demand.

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Last night’s presidential election wasn’t enough to propel stocks upward today as weak economic factors and reports continue to weigh on markets. Voters cast their ballots yesterday with the recovery of the economy in mind, and investors continue to play the market based on reactions of economic reports.

Today’s October-job report from Challenger, Gray and Christmas revealed the announced layoffs of 112, 884 workers, up 19% from September: Read the rest of this entry »

Initial unemployment claims rose by 7,000 to 455,000 in the week ending August 2, the highest level observed since March 2002. In recent weeks, unemployment claims have been boosted by Congress’ 13-week extension in unemployment benefits:

Some applicants for the new 13-week extension actually found that they were eligible for new jobless benefits. Thus, “people are coming into the system that probably would not have filed absent” the extended-benefits program, a Labor Department analyst said Thursday, though the analyst was unable to say exactly how many.

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According to a report released today by ADP Employer Services, 79,000 private-sector jobs were slashed in June. Some economists view the ADP report as an indication of the more detailed and reliable Department of Labor employment report to be released tomorrow.

HSH’s Vice President Keith Gumbinger says, “At least at this point, the ADP report is not exactly indicative of the Bureau of Labor Statistics employment report.” Gumbinger noted the current lack of correlation between the two reports.

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