US jobless claims rise, productivity stays high
WASHINGTON — The number of US workers filing for jobless benefits unexpectedly rose last week, but another big gain in productivity in the fourth quarter offered hope that companies were getting close to adding to payrolls. Initial claims for state unemployment benefits increased 8,000 to a seasonally adjusted 480,000 in the week ended January 30, the Labour Department said yesterday. That was above market expectations for 460,000.

In another report, the department said non-farm productivity grew at a 6.2 per cent rate in the fourth quarter as employers ramped up output at the quickest pace in six years and kept a tight lid on costs. Analysts had expected productivity, which measures the hourly output per worker, to rise at a 6 per cent rate after gaining 7.2 per cent in the third quarter.

"The big news in recent jobless data was claims moving below 500,000, though the numbers remain sticky. That suggests that any improvement in employment will be slow," said Subodh Kumar, chief investment strategist at Subodh Kumar & Associates in Toronto. US stock index futures deepened losses, while Treasury debt prices added to gains. The US dollar fell to session lows versus the yen.

 Unemployment, which is lagging the broader economic recovery, is one of President Barack Obama's toughest challenges. Unhappiness over unemployment cost Obama's Democrats a crucial Senate seat last month and threatens big losses for the party in the November congressional elections. The four-week moving average for new claims rose 11,750 to 468,750 last week, the Labour Department said. The four-week moving average, considered a better gauge of underlying trends, rose for a third week after falling for 19 weeks. — Reuters