http://finance.yahoo.com/news/ahead-bell-us-unemployment-benefits-101937690.html
This article gave us a bright light of employment situation due to many facts:
According to the article, jobless claims have fallen this summer compared to the start of the Great Recession at the end of 2007. Also, according to FactSet, employers are expected to have hire more 220,000 employees in August. Economists also predicted that the unemployment rate got to 6.1 percent, from 6.2 percent. Compared to 195,000 jobs added in 2013, employers now have added an average of 230,000 jobs a month so far this year.
This rising optimism about employment helped boost consumer confidence, according to the Conference Board, a research group.
However, wage did not have the same effect. The article consequently points out that the more people have jobs, the more paychecks they should get, so that consumer spending can grow.
This makes sense in the terms of having consuming security. People are more apt to purchase goods and services when the overall outlook of the economy is positively trending. The more people in the labor force who are employed means more paychecks therefore we should see a boost in consumer spending. The unemployed can feed off the 230,000 jobs added per month to boost the economy as well. This article does shed some light on the current outlook for the economy in terms of the labor force.
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