"Resilient US Labor Market Bounces Back with Worker Productivity Surge"

The US labor market remains resilient as weekly jobless claims increase slightly and layoffs drop to an 11-month low in July. Worker productivity rebounds in the second quarter, leading to a marked slowdown in labor costs. These positive indicators, along with reports of moderation in inflation and wage growth, are fueling optimism that the economy can avoid a recession. Despite labor market tightness, the Federal Reserve is not expected to raise interest rates again this cycle.