Drop in Jobless Claims Support Healthy Labor Market Theory

Despite the fact that the US economy seems to be dragging its heels, last week’s jobless numbers dropped 16,000 to 278,000.

These claims are still 9% higher than numbers reported in October, which held the lowed number of claims since the recession. If the economy remains in a slowed state, claims could rise even more.

It is believed that US growth in the fourth quarter will be reported as diminished as exports were weaker, and manufacturers and retailers struggled. A first report on fourth quarter GDP will be released on Friday.

While consumers and businesses have good reason to be wary in light of the stock situation, consumer confidence remains high—the highest since October.

Read more here.