U.S. productivity in fourth quarter rises 0.7% (by Jeffry Bartash)

WASHINGTON (MarketWatch) - U.S. productivity rose 0.7% in the final three months of 2011, according to a preliminary reading by the Labor Department. Economists surveyed by MarketWatch expected productivity among nonfarm businesses to increase by 0.6%. The amount of goods and services produced, known as real output, grew at an annual rate of 3.6%. Yet hours worked rose almost as fast, up 2.9%, and hourly compensation climbed 1.9%. As a result, unit-labor costs went up 1.2% after a revised 2.1% decrease in the third quarter. Unit-labor costs had been forecast to rise 0.8%. The increase in third-quarter productivity, meanwhile, was revised down to 1.9% from 2.3%.

Weekly U.S. jobless claims fall 12,000 to 367,000 (by Jeffry Bartash)

WASHINGTON (MarketWatch) - U.S. jobless claims dropped by 12,000 to a seasonally adjusted 367,000 in the week ended Jan. 28, the Labor Department said Thursday. Economists surveyed by MarketWatch had estimated claims would drop to 370,000. Claims from two weeks ago were revised up by 2,000 to 379,000. The four-week average of claims, meanwhile, fell a smaller 2,000 to 375,750. The monthly average smoothes out seasonal quirks and provides a more accurate assessment of labor-market trends, economists say. Also on Thursday, the government said continuing claims decreased by 130,000 to a seasonally adjusted 3.44 million in the week ended Jan. 21. Continuing claims are reported with a one-week lag. About 7.67 million people received some kind of state or federal benefit in the week ended Jan. 14, virtually unchanged from the prior week. Total claims are reported with a two-week lag.

Planned job cuts climb 28% in January: Challenger (by Steve Goldstein)

WASHINGTON (MarketWatch) -- Planned job cuts in January climbed 28% to 53,486, the largest monthly layoff total since September, according to outplacement firm Challenger, Gray & Christmas. The job cut total was also up 39% from the prior-year January. Leading the January surge were retailers and financial firms, which announced 12,426 job cuts and 7,611 job cuts, respectively. Historically, January is the heaviest job-cut month, averaging 101,084 announced layoffs between 1993 and 2011.