Economic recovery in the United States is beginning to take hold, but the weak labour market is contining to lag, according to data released today.
The productivity of US businesses surged in the second quarter, allowing firms to boost output, but the number of Americans filing first-time claims for jobless benefits rose unexpectedly.
US non-farm productivity climbed at a 6.8 per cent annual rate during the second quarter, well above the previously reported 5.7. The better-than-expected productivity performance was the strongest since the first quarter of last year.
Strong advances in productivity - or output per hour of all workers - have allowed US business to increase production without adding workers to their payrolls.
Although the economy began to climb out of recession in November 2001, it has continued to lose jobs.
But economists say that in the long run, strong advances in productivity are good for the economy since improved efficiency is the main building block for better living standards.