Fewer Americans file jobless claims in late October

The employment situation has been a mixed bag as of late, but with first-time applications for unemployment benefits on the decline, consumers might begin to feel more confident - and potentially increase spending.

Part of the reason for the decline was that California began working through its backlog, but the end of the government shutdown also contributed. However, experts still say that more job creation is needed to generate a significant spending bump.

"The issue for the market is job creation," Scott Brown, chief economist at Raymond James & Associates Inc, told Bloomberg.

Private sector adds 130,000 jobs in October
The U.S. economy continued to create new positions in the first month of the fourth quarter. According to the ADP National Employment Report, 130,000 jobs were added to the private sector - a slight drop from September's 145,000 additions.

Large businesses led the way with 81,000 new positions, followed by small businesses at 37,000 and medium businesses at 13,000. Four of the five industries experienced growth, with financial activities being the lone exception, losing 5,000 jobs.

Mark Zandi, chief economist of Moody's Analytics, said the drop can be attributed to the government shutdown. But, job growth is still a positive for the economy. The key is for the economy to recover in November with more jobs created now that the turmoil in Washington has come to an end.

Short term lending could prove beneficial to consumers who increase spending
With first-time applications for unemployment benefits on the decline and positive job growth, Americans might feel comfortable enough with their job security to increase spending in the final months of the year.

However, people who choose to go this route need to be aware of the fact that they could face financial troubles in the near future, especially if they face an unexpected expense such as a trip to the emergency room or home repair. In such a situation, consumers might fall short on essential bills, as they were forced to withdraw from savings to cover the surprise cost. Instead of incurring late fees and penalties, people should consider short term lending.

This type of lending agreement enables borrowers to secure funds quickly so they are able to cover all the essentials when an unexpected expense hits. With recent bad press, consumers may be wary of short term loans, but it is important to examine the whole picture before making a decision. People should measure the cost of missing a payment on a bill with the fees and interest that would be accrued on a short term loan. Because late charges and penalties are often higher, this could be a beneficial option.