A small hope found in a big drop
The most recent data regarding jobs in the United States came as a surprise for nearly everyone as unemployment claims dropped to a four-month low, according to Bloomberg. The number of Americans receiving benefits and extended payments also dropped.
That shows, at the very least, that companies have slowed the widespread firing that resulted after the panic of 2008 and 2009. While this may not indicate growth, the trend does show that there is at least some stability and confidence.
"We don't see any more deterioration in the labor market," Eric Green, chief market economist at TD Securities Inc., told the news source. "I don’t see any panic among businesses to shed workers, but you have some reluctance to hire workers."
The trade deficit continued to widen rather than narrow, moving from $50.8 billion to $53.1 billion, a 4.4 percent increase that rocked even the most pessimistic economist's expectations. The median sum of the forecasts was $48 billion, according to the news provider.
"The fear is that all that political uncertainty relating to the debt-ceiling debate and the potential S&P downgrade weighed on business confidence and dampened hiring," Sal Guatieri, a senior economist at BMO Capital Markets in Toronto, told Bloomberg before the S&P report. "There is a risk that we see an increase in claims because of the fiscal uncertainty."
Anyone who has looked at the stock markets lately can attest to this, although the recent jobs claims report sent a spike of hope through Wall Street, as the market grew modestly. In a separate article from Bloomberg, economist Dan Veru explained that he didn't think there would be another recession, especially after the data. Right now, many investors are instead worrying over Europe.