U.S. Unemployment Rate Drops

The big news from the world of finance today is that the U.S. unemployment rate dropped in November. In the wake of a jobs summit at the White House, the latest numbers for the employment picture are in. And in November, it looks as though the economy only shed 11,000 jobs. This is opposed to the 125,000 that many expected the economy to shed in November. The news also meant that the unemployment rate dropped to 10%

Of course, this positive data does not indicate that a significant number of jobs are being added to the economy — just that the economy is not hemorrhaging them at near the rate we have been seeing throughout the recession. But the news is still encouraging, as it indicates a certain measure of stability in the jobs market, and in the economy. With fewer jobs being lost, there is hope that consumer confidence will return, and with it the important economic driver of consumer spending.

Initially, the stock market rallied heavily on the news. However, other considerations are now taking precedence, and the stock market has pared its gains rather dramatically as mid-day approaches.

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