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LIVE: US labor data is out, and it is largely POSITIVE for the inflation outlook. Initial jobless claims came in at 199k, BELOW 205k expected, meaning layoffs remain limited. However, continuing claims rose to 1.801M, ABOVE 1.789M expected, meaning unemployed workers are taking longer to find new jobs. Meanwhile, worker productivity jumped to 1.4%, more than DOUBLE the 0.6% expected, meaning businesses are producing more with nearly the same labor input. Also, unit labor costs rose just 1.3%, BELOW 2.1% expected, meaning wage-driven inflation pressure is cooling. That combination suggests inflation can continue cooling without a sharp deterioration in employment. $BSB