boards consumer confidence survey showed households bullish on the labor marketthat was reinforced by a separate report on thursday from global outplacement firm challenger gray christmas showing usbased employers announced 23697 cuts in july the lowest number since august 2022 layoffs were down 42 from juneworkers were more productive in the second quarter which helped to curb growth in labor costsnonfarm productivity which measures hourly output per worker increased at a 37 annualized rate last quarter the labor department said in a third reportdata for the first quarter was revised higher to show productivity declining at a 12 pace instead of the previously reported 21 rate economists polled by reuters had forecast productivity increasing at a 20 rate productivity grew at a 13 pace from a year ago it had declined for five straight quarters on a yearonyear basisstill productivity remains lackluster during the current business cycle starting in the fourth quarter of 2019 labor productivity has grown at a 14 rate far is below the longterm historical average rate since 1947 of 21sluggish productivity is partly the result of worker hoarding unit labor costs the price of labor per single unit of output rose at a 16 rate in the second quarter they increased at a 33 pace in the prior quarter unit labor costs grew at a 24 rate from a year ago the moderation bodes well for bringing inflation down to the feds 2 targetthe improving trend in productivity along with slowing nominal wage growth points to inflationary pressures from the labor market starting to subside said sarah house a senior economist at wells fargo in charlotte north carolina