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Working hours fall but productivity climbs.

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The labor Department's Jobless Claims report reached its highest level in 25 years for the week ending October 25th. Claims rose 122,000 from the prior week to a seasonally adjusted 3.84 Million. The good news is that first time applicants fell by 4000.

New jobless claims are up 45% compared to a similar week last year and continuing claims are up 46%.

In other news the Preliminary Nonfarm productivity and Unit cost release revealed US firms cut back working hours in the third quarter at the fastest rate in six years but kept productivity growing more than expected. Productivity data is a measure of output per hour of all persons and increased at a 1.1% annualized as output fell 1.7% and hours worked dropped 2.7%. Economists expected productivity to increase at a 0.30% annual rate.

Real hourly compensation fell in the last quarter marking the largest annual decline in 13 years.

Tomorrow we have the nonfarm payroll numbers for October. Economists are expecting a plunge of about 210,000 and for the unemployment rate to climb to 6.3%.

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