Unemployment Claims Down as Labor Market Strengthens

Despite fluctuating consumer confidence and general fears of economic slowdown, the US definitely has one thing going for it right now: a strong, steady labor force. According to statistics from the US Labor Department gathered by Reuters last week, unemployment benefit claims dropped by 1,000 to 216,000. In fact, claims have not deviated very far from the 49-year unemployment low of 202,000 reached back in September. Some economists have been concerned about the labor market over the past few months due to concerns of seasonal layoffs, but so far, the highest claims have climbed recently was 235,000 at the tail-end of November. According to data from nonfarm payrolls, 155,000 jobs were added in November after surging by 237,000 in October.

It is important to note, however, that not everything is sunshine and roses. Though unemployment is definitely down, meaning everyone has a job, consumer confidence has been fizzling now that the holidays are over, and the housing market has weakened considerably. This could mean that even though more people have jobs, and therefore money to spend, they may not feel confident making large purchases like homes. It could also be a problem of salary; just because everyone has a job doesn’t mean that they are good jobs.

These are merely theories, however. If nothing else, we should take pride in the fact that unemployment is down to 3.7 percent, and is projected to hit 3.5 by the start of the new year.

Written by  
5 years ago
Article Tags:
· · ·