Worker productivity dropped to the lowest levels in four years in the second quarter, a signal that businesses may need to hire more employees to continue making gains.

Productivity decreased at an annual rate of 1.8 percent between April and June, double the 0.9 percent drop initially reported last month, the Labor Department said Thursday. 

Meanwhile, labor costs made their biggest leap since the end of 2008 — up 1.1 percent and well above the last month's estimate of 0.2 percent. 

The revisions came after figuring in the $50 billion trade gap and slower growth in the second quarter. 

Reps. Raul Grijalva (D-Ariz.), John Conyers (D-Mich.) and Dan Maffei (D-N.Y.) on Thursday asked fellow Democratic members to support a letter to President Obama asking him to keep Social Security as it is. 

Obama considers new tax breaks as White House awaits report expected to show higher unemployment.

The American Medical Association (AMA) and 90 other medical organizations on Thursday sent a letter to the Treasury Department expressing their opposition to a change in tax policy that would allow trial lawyers to deduct certain litigation expenses. 

The Pew Economic Policy Group on Thursday outlined cost projections for different scenarios involving the extension of tax cuts enacted under former President George W. Bush.

The National Taxpayers Union wants to prevent the repeal of a tax credit used by domestic oil and gas producers.

Rep. Ann Kirkpatrick (D-Ariz.) is renewing her push for passage of a bill that calls for lawmakers to take a pay cut, following the release of a poll that shows a majority of Americans support the move.     

Kirkpatrick's bill calls for lawmakers to take a 5 percent pay cut from their $174,000 annual salaries, saving about $4.7 million a year. 

A Rasmussen poll released this week shows 75 percent of likely voters want Congress to take a pay cut until the federal budget is balanced.

"This poll is a clear sign that folks want Congress to take action now," Kirkpatrick said in a statement. "That starts with having every member vote on this issue on the House floor as soon as possible."

The 5 percent cut would amount to about $8,700 a year for each lawmaker. 

The federal government's effort to boost home sales through tax credits have benefited 3.3 million homebuyers since 2008, a government watchdog said Thursday.

The government enacted three versions of the tax credits aimed primarily at first-time homebuyers. The credits varied in size and scope, but the nonpartisan Government Accountability Office (GAO) reported that they benefited a total of 3.3 million claimants and will cost the government roughly $22 billion through 2019.

The tax credits have now expired, and the Obama administration said this week that it is not planning to push hard for another version of the credit.

The most popular of the three credits was included in the Obama administration's 2009 fiscal stimulus package. The credit, with a maximum value of $8,000, was claimed by 1.7 million homebuyers, representing roughly $12 billion of stimulus money.

The tax credits were approved by Congress to prop up the  housing market, which began declining in the summer of 2006 and then helped trigger the financial crisis and recession. Home prices have plunged roughly 30 percent since the summer of 2006, according to the S&P/Case-Shiller home price index, although they have shown signs of stability during the last half-year.

But the housing market remains weak, and recent reports have shown steep declines in the sale of new and existing homes. Some private economists have raised concerns that the tax credits have simply encouraged homebuyers to purchase homes earlier rather than increase the total number of homes purchased.

The National Association of Realtors reported last week that the expiration of the tax credits was a major factor in the 27 percent decline in the sale of existing homes in July.

"Consumers rationally jumped into the market before the deadline for the home buyer tax credit expired," said Lawrence Yun, chief economist at the association.

Factory orders made a modest gain in July on increased demand for commercial aircraft that boosted other sagging areas.

Orders were up 0.1 percent, the first increase after two months of declines, including a revised 0.6 percent drop in June, the Commerce Department reported Thursday.

The June figure was revised from the 1.2 percent drop in its initial estimate, as machinery orders were better than previously thought.