Economic data released on Thursday, May 7, 2026, showed that weekly jobless claims rose to 200,000, which was lower than the market expectation of 205,000. Meanwhile, preliminary Q1 productivity grew at a slower-than-expected pace of 0.8%, while unit labor costs increased by 2.3%.
Weekly Jobless Claims
The U.S. Department of Labor report indicated that the labor market remains relatively tight.
- Initial Claims: Filed for the week ending May 2, these claims rose by 10,000 from the previous week's revised level of 190,000 to reach 200,000.
- Four-Week Moving Average: This less volatile measure slipped to 203,250, a decrease of 4,500 from the previous week's revised average.
- Continuing Claims: These claims, which represent the number of people receiving ongoing benefits, fell to 1.766 million for the week ending April 25, lower than the anticipated 1.800 million.
Preliminary Q1 Productivity & Costs
The Bureau of Labor Statistics (BLS) released preliminary figures for the first quarter of 2026, showing a deceleration in efficiency gains.
- Nonfarm Business Productivity: Increased at a seasonally adjusted annual rate of 0.8%, missing economist forecasts of 1.0%. This followed a downwardly revised 1.6% increase in the previous quarter.
- Unit Labor Costs: Rose by 2.3% in Q1, also coming in below the expected 2.4–2.6% increase. These costs reflect a 3.1% rise in hourly compensation offset by the 0.8% productivity gain.
- Manufacturing Sector: Productivity in this sector was notably stronger, rising 3.6% during the quarter.
Would you like a more detailed breakdown of the manufacturing sub-sectors or the historical revisions for these figures?
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