Efficiency surge: U.S. labor productivity rose at a 3.6% annualized rate in the third quarter, its fastest pace in a year, as increased business investment in artificial intelligence, software and equipment began translating into greater efficiency. Unit labor costs fell 0.7%, the first decline since the second quarter of 2025, which could help businesses better manage expenses and limit price increases. Bloomberg has the full story.
Travel vs. gifts: Consumers are prioritizing travel and live events on their holiday wish lists, but a Visa survey finds that physical gifts are more likely to receive their spending dollars, with 27% favoring gifts compared with 15% prioritizing experiences for others. Rising travel costs, inflation and economic uncertainty are prompting many households to stay closer to home, seek lower-cost retailers and scale back travel spending. Visa projects holiday sales will grow 4.5% from last year, but growth is expected to be just 1.1%, suggesting consumers remain cautious despite anticipating higher holiday spending. CNBC has the full story.
Layoffs remain low: U.S. unemployment claims fell to 189,000 last week, their lowest level since mid-July, signaling that layoffs remain historically low and most workers continue to enjoy job security. Claims have remained below 200,000 for eight consecutive weeks, while employers have added an average of 68,000 jobs per month this year, an improvement over 2025’s sluggish hiring. Economists expect Friday’s October jobs report to show 65,000 new jobs and an unemployment rate holding steady at 4.2%. The Associated Press has the full story.
