U.S. worker efficiency climbed in the third quarter, but the increase was largely due to cutbacks on labor that could spur unemployment.

Productivity, the measure that gauges employee output per hour, rose at a 1.3% annual rate in the third quarter, the Labor Department reported yesterday (Wednesday). However, this is largely because companies braced for a recession by reducing employee hours at the fastest pace in six years and keeping a lid on wages.

The number of hours worked fell at a rate of 3.1% and labor costs, a gauge of inflationary pressures climbed at a 2.8% annual rate - less than the initial estimate of 3.6%.  Labor costs were up just 1.4% from one year ago, an indication that the soft labor market is making it hard for workers to secure higher wages.

ADP Employer Services said separately yesterday that approximately 250,000 private-sector jobs were eliminated in November, the largest amount in

...

U.S. worker efficiency climbed in the third quarter, but the increase was largely due to cutbacks on labor that could spur unemployment. Productivity, the measure that gauges employee output per hour, rose at a 1.3% annual rate in the third quarter, the Labor Department reported yesterday (Wednesday). However, this is largely because companies braced for a recession by reducing employee hours at the fastest pace in six years and keeping a lid on wages. The number of hours worked fell at a rate of 3.1% and labor costs, a gauge of inflationary pressures climbed at a 2.8% annual rate - less than the initial estimate of 3.6%.  Labor costs were up just 1.4% from one year ago, an indication that the soft labor market is making it hard for workers to secure higher wages. ADP Employer Services said separately yesterday that approximately 250,000 ...

The road to hyperinflation is paved with good intentions.

Zimbabwe, here we come.

Bernanke Says Fed May Buy Treasuries to Aid Economy Bloomberg

By Scott Lanman and Vivien Lou Chen

Dec. 1 (Bloomberg) — Federal Reserve Chairman Ben S. Bernanke said he has “obviously limited” room to lower interest rates further and may use less conventional policies, such as buying Treasury securities, to revive the economy.

The U.S. economy “will probably remain weak for a time,” even if the credit crisis eases, Bernanke said today in a speech in Austin, Texas. While the Fed can’t push interest rates below zero, “the second arrow in the Federal Reserve’s quiver — the provision of liquidity — remains effective,” he said.

Bernanke’s comments pushed Treasury yields to record lows. Bernanke has created more than $2 trillion of emergency lending programs in the past year, using the Fed’s balance sheet and money-creation authority to cushion

...

Gold demand increased by 45% from the second quarter to the third. So why are gold prices falling? Mike Caggeso says frantic de-leveraging by hedge funds outweighed record retail demand for the precious metal. But he says the inflationary impact of the government’s bailout bonanza will be the catalyst for soaring gold prices in 2009.

This from Money Morning:

“Gold’s universal role as a store of value has shone through during this quarter helping attract investors and consumers to all forms of gold ownership,” James E. Burton, chief executive officer of the World Gold Council.

However, if you’d just looked at gold’s performance alone, you’d never be able to tell demand was so strong. Indeed, in the third quarter alone, gold prices tumbled almost 6% – and were actually down as much as 20%, until a mid-September rebound narrowed that loss.

Then came “Black October.”

The worldwide financial crisis continued to

...

The Department of Labor reported Initial Claims for the week ending Nov. 15th were 542,000, an increase of 27,000 from the previous week's revised figure of 515,000 (originally reported at 516,000). This is the highest level since July of 1992.  The consensus was 517,000, which brought today's report at a 4.85% surprise.  California had an increase of 15,532 but declined to provide comment.  North Carolina, Tennessee, New Jersey, New York, and South Carolina all reported a significant increase in filings, a combined 23,443, cited from layoffs in primary metals, furniture, transportation equipment, industrial machinery, construction, service, and manufacturing industries.  The 4-week moving average was 506,500, the highest in 25 years, an increase of 15,750 from the previous week's revised average of 490,750 (which was a 17 year high).  Less than half of unemployed workers do file for unemployment benefits, while there has been much contraction in economic activity recently

...

In the currency market, the dollar edged higher against the euro. Late Tuesday, the euro was trading at $1.2618 vs. $1.2643 on Monday.

The day’s big number was the Labor Department report showing that producer prices fell 2.8% in October, the most in at least 50 years.

The headline number was slightly misleading, however, as the plunge was triggered by a 24.9% drop in gasoline prices, a record freefall going back to 1947, when the government first began keeping track. Outside of food and energy, prices were actually up, by 0.4% in October.

But Nigel Gault, economist with IHS Global Insight, downplayed the core figure, saying that, “We saw huge commodity price increases really through the middle part of this year … It took a long time for that to start feeding though into the core inflation. So we’re probably seeing the last gasp of the inflationary implications of the previous

...

Shortly after 12:00 pm ET on Thursday, it seemed like the market was heading for the fourth-straight day of losses, however, afternoon trading brought a sharp 900-point surge that left the Dow Jones industrial average up over six percent, with other indices experiencing similar increases. Early losses were partially attributable to a Labor Department report that put newly-filed jobless claims at a 7-year high, as well as continuing evidence of suffering in the consumer sector, however investors could not resist the cheap prices that resulted.

Let us hear your thoughts below:

Friday November 7, 2008 Navivest

The Bureau of Labor Statistics of the U.S. Department of Labor reported today released a report, which showed that non-farm payroll employment decreased by 240,000 in October and the unemployment rate jumped to 6.5%, from 6.1% in September.

Economists had been looking for a job loss of 200,000, with the unemployment rate climbing to 6.5% For the first ten months of the year, the country has lost an astounding 1.2 million jobs and over fifty percent of that has come in the last three months.

We have seen jobs losses with every successive month this year and so far, not only do we not see an end in sight, the problem is actually accelerating.

According to the Labor Department, we saw continuing job losses in manufacturing, construction and several service-providing industries, while the health care and mining industries add jobs.

With the 0.4% jump to 6.5% in the

...

Retailers 3Q Earnings Dismal; Cisco Sees Small Biz Sales Growth; Blackstone Posts $502 million 3Q Loss; IEA Sees $100 Oil Average; Mattel Toying with Job Cuts; Direct TV Earnings Up; Fidelity Cuts 1,300 jobs; Jobless Claims Fall

October sales dropped for big-name retailers Macy’s Inc. (M), Target Corp. (TGT) and Gap Inc. (GPS) a result of continuing job losses and widespread credit drought that took the spirit out of consumer spending. Same-store sales climbed 2.4% at Wal-Mart Stores Inc. (WMT), as tight-budget shoppers searched for cheaper prices, Bloomberg reported. A day after forecasting a 5% to 10% annual revenue drop, Cisco Systems Inc. (CSCO) said it will invest $100 million sales ...

In a Department of Labor report issued on Thursday, it was shown that the number of Americans claiming longer-term jobless benefits has reached 3.84 million. This represents the highest level since February of 1983; twenty-five years ago. It’s clear that as lay-offs continue across the board, the unemployed are finding it increasingly difficult to compete for remaining positions. On a lighter note, while extended unemployment has risen, new claims fell to 481,000 last week.

Let us hear your thoughts below: