Council of Economic Advisers Blog

  • The Employment Situation in June

    While more work remains to be done, today’s employment report provides further confirmation that the U.S. economy is continuing to recover from the worst downturn since the Great Depression. It is critical that we remain focused on pursuing policies to speed job creation and expand the middle class, as we continue to dig our way out of the deep hole that was caused by the severe recession that began in December 2007. 

    Today’s report from the Bureau of Labor Statistics (BLS) indicates that private sector businesses added 202,000 jobs last month (see first chart below). Total non-farm payroll employment rose by 195,000 jobs in June. The economy has now added private sector jobs for 40 consecutive months, and a total of 7.2 million jobs has been added over that period. In spite of monthly volatility, over the past three years the pace of job growth has increased each year (see second chart below). So far this year, 1.23 million private sector jobs have been added.

    The household survey showed that the unemployment rate remained at 7.6 percent in June down from 8.2 percent a year ago. The labor force participation rate rose by 0.1 percentage point for the second month in a row to 63.5 percent in June.

    In the four years since the recession ended in June 2009, the economy has added 5.3 million jobs, thanks to the resilience of the American people and policies like the Recovery Act, which helped bring the recession to an end and put us on the path to recovery. With the recovery gaining traction, now is not the time for Washington to impose self-inflicted wounds on the economy. The President will continue to press Congress to act on the proposals he called for in his State of the Union address to make America a magnet for good jobs, help workers obtain the skills they need for those jobs, and make sure that honest work leads to a decent living.

  • Rock and Roll, Economics, and Rebuilding the Middle Class

    Today, at 7:00 pm EST, Chairman of the Council of Economic Advisers Alan Krueger will deliver remarks on income inequality and rebuilding the middle class at the Rock and Roll Hall of Fame.

    As he'll discuss this evening, using rock and roll industry as a example is one of the best ways to explain economics -- many of the forces that are buffeting the U.S. economy can be understood in the context of the music industry.

  • The Employment Situation in May

    While more work remains to be done, today’s employment report provides further confirmation that the U.S. economy is continuing to recover from the worst downturn since the Great Depression. It is critical that we remain focused on pursuing policies to speed job creation and expand the middle class, as we continue to dig our way out of the deep hole that was caused by the severe recession that began in December 2007.

    Today’s report from the Bureau of Labor Statistics (BLS) indicates that private sector businesses added 178,000 jobs last month. Total non-farm payroll employment rose by 175,000 jobs in May.  The economy has now added private sector jobs every month for 39 straight months, and a total of 6.9 million jobs has been added over that period. So far this year, 972,000 private sector jobs have been added.

    The household survey showed that the unemployment rate ticked up to 7.6 percent in May from 7.5 percent in April. However, the labor force participation rate also rose by 0.1 percentage point to 63.4 percent in May, as 182,000 more unemployed workers reentered the labor force in May than in April, a sign that more workers felt encouraged to search for a job.

  • The Employment Situation in April

    While more work remains to be done, today’s employment report provides further evidence that the U.S. economy is continuing to recover from the worst downturn since the Great Depression. It is critical that we remain focused on pursuing policies to speed job creation and expand the middle class, as we continue to dig our way out of the deep hole that was caused by the severe recession that began in December 2007.

    Today’s report from the Bureau of Labor Statistics (BLS) shows that private sector businesses added 176,000 jobs last month. Total non-farm payroll employment rose by 165,000 jobs in April. The February and March employment estimates were revised up by a total of 114,000 jobs. The economy has now added private sector jobs every month for 38 straight months, and a total of 6.8 million jobs has been added over that period.  Over 800,000 private sector jobs have been added over the last four months.

    The household survey showed that the unemployment rate edged down from 7.6 percent in March to 7.5 percent in April, the lowest rate since December 2008. The labor force participation rate was unchanged at 63.3 percent in April.

  • Chairman Alan Krueger Addresses “Fairness as an Economic Force” before a Conference at Oberlin College

    On April 26, 2013, President Obama’s Chairman of the Council of Economic Advisers, Alan B. Krueger, delivered remarks on “Fairness as an Economic Force” at a conference on “Learning and Labor Economics” at Oberlin College in Oberlin, Ohio.

    Read Chairman Krueger’s Remarks HERE

    Read the excerpts of Chairman Krueger’s remarks HERE

  • Advance Estimate of GDP for the First Quarter of 2013

    Today’s report indicates that the economy posted its fifteenth straight quarter of positive growth, as real GDP (the total amount of goods and services produced in the country) grew at a 2.5 percent annual rate in the first quarter of this year, according to the “advance” estimate released by the Bureau of Economic Analysis. Over the last fifteen quarters, the economy has expanded by 8.3 percent overall, and the private components of GDP have grown by 12.2 percent. Real GDP is now 3.2 percent larger than it was at the previous business cycle peak in 2007:Q4. While there is more work to be done, this report, together with other economic indicators, provides further evidence that the economy is moving forward in the right direction.

    It is important to recognize that GDP is made up of various components. Personal consumption expenditures, for example, rose by 3.2 percent at an annual rate in 2013:Q1, the fastest rate in over two years. Residential investment grew by 12.6 percent last quarter and has increased for eight quarters in a row, its longest streak since 2004-2005. Federal defense spending fell 11.5 percent at an annual rate in 2013:Q1, while federal nondefense spending declined at a 2.0 percent rate and state and local government purchases fell at a 1.2 percent rate.

    The “advance" estimate of first quarter GDP growth encompasses the first month after sequestration began on March 1. It is likely that the contraction in Federal defense and non-defense spending, at least in part, reflects the onset of sequestration. These arbitrary and unnecessary cuts to government services will be a headwind in the months to come, and will cut key investments in the nation’s future competitiveness. The Congressional Budget Office has estimated that the sequester will reduce GDP growth by 0.6 percentage point for the year.