U.S. business productivity growth climbed at the fastest pace in a half century in 2004, but was sluggish at the end of 2004, and claims for jobless aid unexpectedly slipped last week, according to government reports.

Nonfarm business productivity, or worker output per hour, grew at an annual rate of just 0.8 percent in the fourth quarter, the smallest advance since a drop in the first quarter of 2001, the Labor Department said on Thursday.

The productivity of American workers, the critical component for rising living standards, increased by 4.1 percent in 2004. But the rapid gains in productivity began slowing in the July-September quarter when productivity rose by just 1.8 percent after increases of 3.7 percent in the first quarter and 3.9 percent in the second quarter last year.

The department also said initial filings for state unemployment benefits fell to 316,000 in the week ended Jan. 29, a decrease of 9,000 from the previous week, beating economists’ expectations. This matched a figure reached in early December.

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