Council of Economic Advisers Blog

  • Watch the Launch of the Center on Global Economic Governance Live

    Ed. note: This event has ended.

    At 9:15 am EDT watch President Obama’s Chairman of the Council of Economic Advisers, Alan B. Krueger, deliver a keynote address on “Reversing the Middle-Class Jobs Deficit” at Columbia University’s new Center on Global Economic Governance. Chairman Krueger’s will discuss the three main jobs crises the country faced when President Obama took office and what his Administration is doing to address these imbalances.

  • Alan Kruger to Speak on Reversing the Middle-Class Jobs Deficit

    Thursday, April 26: Alan B. Krueger, Chairman of President Obama's Council of Economic Advisers (CEA) will deliver a speech on Reversing the Middle-Class Jobs Deficit. 

    WASHINGTON – At 9:15 am EDT on Thursday, April 26, 2012, President Obama’s Chairman of the Council of Economic Advisers, Alan B. Krueger, will deliver a keynote address at Columbia University’s new Center on Global Economic Governance. 
     
    Chairman Krueger’s remarks titled “Reversing the Middle-Class Jobs Deficit,” will discuss the three main jobs crises the country faced when President Obama took office and what his Administration is doing to address these imbalances.

    This event will be live-streamed on the White House Council of Economic Advisers blog and linked to from WhiteHouse.gov/live.

    WHO:             Alan B. Krueger, Chairman, Council of Economic Advisers
     
    WHAT:          Remarks on "Reversing the Middle-Class Jobs Deficit"
     
    WHEN:          9:15 am EDT, Thursday, April 26, 2012
     
    WHERE:       Rotunda, Low Memorial Library, Columbia University, New York, NY

     

  • The Employment Situation in March

    There is more work to be done, but today’s employment report provides further evidence that the economy is continuing to recover from the worst economic downturn since the Great Depression. It is critical that we continue to make smart investments that strengthen our economy and lay a foundation for long-term middle class job growth so we can continue to dig our way out of the deep hole that was caused by the severe recession that began at the end of 2007.

    Employer payrolls increased by 121,000 jobs in March, according to the Bureau of Labor Statistics’ establishment survey. The unemployment rate ticked down to 8.2% in March, according to the household survey.  However, employment was virtually unchanged in the household survey.

    Both surveys indicate the continuing challenges facing construction workers, as a result of the collapse in homebuilding following the bursting of the housing bubble.  The unemployment rate for construction workers stands at 17.2%, more than double the national average.  Because of weak private sector demand for construction investment and the nation’s continuing need for improved infrastructure, including maintenance of existing highways, bridges, and ports, the President’s Budget proposal to increase and modernize the nation’s infrastructure is well targeted to support the economy today and in the future.

    Despite adverse shocks that have created headwinds for economic growth, including weak construction investment, the economy has added private sector jobs for 25 straight months, for a total of 4.1 million jobs over that period. 

  • Chairman Alan Krueger Discusses the Measurement of the Economy at the 2012 NABE Economic Policy Conference

    At 8:30 am ET on Tuesday, March 27, 2012, President Obama’s Chairman of the Council of Economic Advisers, Alan B. Krueger, delivered remarks on “Measuring the Improvement in the Economy and Improving the Measurement of the Economy” at the 2012 NABE Economic Policy Conference in Arlington, Virginia.

    In his prepared remarks, Chairman Krueger said: "… the unique nature of the financial crisis and recession have made the pace of the recovery uneven, but – with the essential help of policy actions that the Obama Administration has taken – the economy is making a transition to more sustainable footing.”

    Here is a link to excerpts of Chairman Kreuger’s remarks.

  • The Employment Situation in February

    Today’s employment report provides further evidence that the economy is continuing to heal from the worst economic downturn since the Great Depression. It is critical that we continue the economic policies that are helping us dig our way out of the deep hole that was caused by the recession that began at the end of 2007, including measures to help the sectors that were most severely harmed by the bubble economy that misdirected investment and created too few durable jobs.

    After losing millions of good manufacturing jobs in the years before and during the recession, the economy has added 429,000 manufacturing jobs in the past two years. For the first time since the 1990s, the manufacturing sector is adding jobs. To support a revival in manufacturing jobs and output, the President has proposed tax incentives for manufacturers, enhanced training for the workforce, and measures to create manufacturing hubs.

    Private sector payrolls increased by 233,000 jobs and overall payroll employment rose by 227,000 jobs in February. The unemployment rate was unchanged at 8.3%.  The unemployment rate has fallen by 0.8 percentage point over the last 6 months. 

    There was an increase in the size of the labor force last month of 476,000. Importantly, the increase in the labor force last month was due in large part to a reduction in the number of workers who exited the labor force between January and February.

    Despite adverse shocks that have created headwinds for economic growth, the economy has added private sector jobs for 24 straight months, for a total of more than 3.9 million payroll jobs over that period. In the last 12 months, 2.2 million private sector jobs were added on net.  In the last 6 months, 1.3 million private sector jobs were added, the most of any 6 month period in nearly 6 years. 

    Sectors with net job increases included health care and social assistance (+61,100), temporary help services (+45,200), leisure and hospitality (+44,000), and manufacturing (+31,000).  Construction lost 13,000 jobs, reflecting a loss of 15,400 specialty trade contractor jobs. Employment in the Federal government fell by 7,000 jobs. 

    The monthly employment and unemployment numbers can be volatile, and employment estimates can be subject to substantial revision. Therefore, as the Administration always stresses, it is important not to read too much into any one monthly report; nevertheless, the trend in job market indicators over recent months is an encouraging sign. 

    February 2012 Jobs Chart CEA

  • A Preview of the 2012 Economic Report of the President

    The Economic Report of the President has been prepared annually by the Council of Economic Advisers since 1947. The theme of this year’s Economic Report of the President is “To Recover, Rebalance, and Rebuild.”  In 2011, the Nation continued to recover from the Great Recession and to make progress toward building a stronger foundation for more balanced and sustainable economic growth in the future.

    The problems that caused the deep recession that began at the end of 2007 and lasted until mid-2009 were a long time in the making, and will not be solved overnight. But economic progress is being made.  In 2011 the Nation continued to recover, rebalance and rebuild a stronger, more secure future.  The economy has expanded for 10 straight quarters. As a result, by the third quarter of 2011, the real gross domestic product (GDP) of the United States had surpassed its peak level at the start of the 2007–09 recession.

    When President Obama took office on January 20, 2009, the U.S. economy was contracting at an alarming rate, and employment was falling by more than 700,000 jobs a month. The plunge in economic activity was even deeper than the Bureau of Economic Analysis initially reported: revised estimates show that the economy contracted at an 8.9 percent annualized rate in the last quarter of 2008, from the initial advanced estimate of 3.8 percent.  This was the largest quarterly downward revision ever reported.