UNEMPLOYMENT

Construction of new homes in the U.S. rose during November but permits fell surprisingly, according to a report by the U.S. Commerce Department, indicating that the housing market might face some weakness in the coming months.

Jobless claims dipped for a second week, suggesting growth in the labor market, but data on home construction showed that sector remains stressed even as the economy shows signs of a pick up.

First-time claims for jobless benefits were essentially unchanged in the latest week, cementing a recent downward trend that remains too modest to bring down unemployment.

New U.S. claims for jobless aid fell last week and factory activity in the country's Mid-Atlantic region grew at its quickest pace in more than 5-1/2 years this month, indicating the economic recovery is gaining traction.

British retail sales rose in November for a second consecutive month as consumer spending picked up ahead of a hike in value added tax (VAT) next year.

The Brookings Institutions' MetroMonitor, which tracks America's 100 largest metropolitan areas, found a sharp reversal of the job growth that was occurring earlier in the year.

The U.S. Senate passed the Middle Class Tax Relief Act of 2010 today by a vote of 81-19. It now goes to the House of representatives, which could take up the matter as early as today.

Many experts in the private sector favor expanding the size of the 750-billion euro European Financial Stability Facility (EFSF), which was created to bail out European countries under sovereign debt pressures.

Greek unions have again staged strikes and demonstrations to protest the government’s austerity measures, including changes in labor laws and widespread cuts in wages.

Business activity in New York State rebounded in December after contracting sharply in November for the first time since mid-2009.

Inflation in the U.S. continued to remain weak during November, in line with analysts' expectations, according to a report by the U.S. Labor Department.

Roubini Global Economics (RGE) has predicted that global economy's growth next year will be marginally weaker than this year, with eurozone holding the biggest risk to global growth, and that the U.S. will not emerge any time soon from the worst unemployment crisis it has faced in decades.

Some of suburbs just west of the nation's capital have the highest household median income in the nation, while several of the counties containing American Indian reservations in a pair of northern plain states have the highest poverty rates, new estimates from the Census Bureau reveal.

Chief Financial Officers (CFOs) in the U.S. expect improved employment rates and wage growth in the coming year, according to a joint study by Duke University and CFO Magazine.

Moody's Investor Services said on Wednesday that it has put Spain's Aa1 debt rating under review for a possible downgrade taking into account the large debt burden of the country and its funding needs next year.

Employment rates remained mostly stable in the euro area during the third quarter, dropping only by 0.2 percent, while unemployment rate in the U.K. touched its highest since the beginning of the year.

The National Retail Federation (NRF) raised its holiday sales forecast to 3.3 percent, or $451.5 billion, from 2.3 percent, saying stock market gains and income growth combined with great deals on merchandise have given consumers the capacity to spend.

The rise in income uncertainty and the 1997 pension reform measures have been largely responsible for the recent rise in China's savings rate. Other factors include health care costs and astronomical real estate prices.

Increasing domestic oil production could reduce unemployment, create jobs, and help jump-start the U.S. economic recovery, said Marc Weidenmier of the American Enterprise Institute.

Rep. Darrell Issa, R-CA, criticized the temporary extension of tax breaks, saying a failure to extend them permanently creates uncertainty for businesses.

The Federal Reserve on Tuesday offered only a cautious nod to the economy's improving prospects as it put a spotlight on lofty unemployment and reaffirmed its commitment to buy $600 billion in bonds.