LONDON (ShareCast) - US dole claimants rose to a 25-year high last week despite a slight fall in the number of new claimants last week.
The US Department of Labor initial filings for state jobless benefits fell by 4,000 to 481,000 in the week ending 1 November, bringing the total number of claimants up to 3.843m. Economists had forecast 476,000 claims.
The figures for people continuing to claim benefits number increased by 122,000 for the week ended 18 October, the most current data available. A year ago, the number stood at 2.59m.
More bad news for the economy came from productuivty figures with third quarter efficiency slowing.
Compared with the third quarter of 2007, productivity rose 2%, down from 3.2% in the 12 months to June. Employee output per hour rose more than forecast at a 1.1% percent annual rate, but labor costs climbed faster at 3.6%, pointing to more cost-cutting on the way.