Claims are still suggesting that the economy started the year with a strong employment situation.

The lower-than-expected number of new jobless claims shows that the labor market is continuing to improve. It suggests that the economy is strong and that companies are feeling more comfortable about hanging on to workers.

The jobless claims drop shows good strength in the labor market at the end of the year. It shows that the economy has recovered after the hurricanes and is heading into the new year with good momentum and good job prospects.

The rise in the employment component, combined with the drop in new jobless claims reported earlier today, suggests that employment conditions remain good at the start of the year.