Productivity falls at a 0.8% rate in the first quarter. That was the first decline since the second quarter of 2022 and followed a 1.7% growth pace in the October-December quarter. Productivity grew at a 1.4% rate from a year ago.

Unit labor costs surge at a 5.7% pace, but trend slowing

... data from the Labor Department on Thursday showed worker productivity dropping for the first time in almost three years in the first quarter, lifting labor costs.

Though productivity was likely distorted by President Donald Trump's sweeping import duties, which depressed output last quarter (Q1 real GDP declined at a 0.3% annualized rate -Progree), it nonetheless highlighted the economic risks wrought by the ever-shifting trade policy.

(snip)

In the week ending May 3, the advance figure for seasonally adjusted initial claims was 228,000, a decrease of 13,000 from the previous week's unrevised level of 241,000. The 4-week moving average was 227,000, an increase of 1,000 from the previous week's unrevised average of 226,000.

A separate program for unemployment compensation for federal employees (UCFE), which is reported with a one-week lag, still showed little impact of the mass firings of public workers, part of the Trump administration's unprecedented campaign to drastically shrink the federal government.

Many workers have taken severance packages, which will run out in September, while others have been put on paid leave after courts ordered their reinstatement.