Unemployment claims fall (a little)

There has been a minute drop in the unemployment rate. However, according to the article, “Unemployment claims fall (a little)”, this should not be something to celebrate. During the first week, more than 400,000 people claimed unemployment. The economists hoped to have the number under 400,000, but week after week, the numbers has been inconsistent. It falls sometimes and then it bounces back. The predicted unemployment rate is to be 9.1% for October despite the increase of the GDP rate to 2.5% for third quarter. With low unemployment rate one would expect the GDP to decrease because demand for consumption would be lower, but not in today’s current US economy.

Article: http://money.cnn.com/2011/10/27/news/economy/unemployment_benefits/index.htm?iid=SF_E_River