Author: Alan B. Krueger

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.

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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.

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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 continue the policies that are helping to build an economy that creates jobs and works for the middle class as we 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 95,000 jobs last month. Total non-farm payroll employment rose by 88,000 jobs in March. The February and March employment numbers were revised up by a total of 61,000 jobs. The economy has now added private sector jobs every month for 37 straight months, and a total of nearly 6.5 million jobs has been added over that period.

The household survey showed that the unemployment rate fell from 7.7 percent in February to 7.6 percent in March, the lowest since December 2008. The labor force participation rate decreased by 0.2 percentage point to 63.3 percent in March.

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This year's Economic Report of the President describes the progress we have made recovering from the worst economic crisis since the Great Depression. After years of grueling recession, our businesses have created over six million new jobs. As a nation, we now buy more American cars than we have in 5 years, and less foreign oil than we have in 20 years. Our housing market is healing, and homeowners and consumers enjoy stronger protections than ever before. But there are still millions of Americans whose hard work and dedication have not yet been rewarded. Our economy is adding jobs, but too many of our fellow citizens still can't find fulltime employment. Corporate profits have reached all-time highs, but for more than a decade, wages and incomes for working Americans have barely budged. As President Obama has said, "A growing economy that creates good, middle-class jobs–that must be the North Star that guides our efforts."

Although economics has long been called "the dismal science," it is more appropriately viewed as a "hopeful science." The right mix of economic policies and leadership can help a country to recover from a deep recession and point to the investments and reforms that will build a stronger, more stable, and more prosperous economy that works for the middle class. Conversely, government dysfunction or misguided fiscal policy can cause self-inflicted wounds to the economy. This year's Economic Report of the President highlights the progress that has been made in recovering from the deepest recession since the Great Depression, together with the policies that the Obama Administration is advancing to address the fundamental imbalances and threats that have built up for decades and that have created severe stress on the middle class and those striving to get into the middle class.

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While more work remains to be done, today’s employment report provides further evidence that the U.S. economy is continuing to heal from the wounds inflicted by the worst downturn since the Great Depression. It is critical that we pursue the policies needed to build an economy that works for 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 is a reminder of the importance of the need for Congress to act to avoid self-inflicted wounds to the economy.  The Administration continues to urge Congress to move toward a sustainable Federal budget in a responsible way that balances revenue and spending, and replaces the sequester, while making critical investments in the economy that promote growth and job creation and protect our most vulnerable citizens.

With today’s release, the Bureau of Labor Statistics has finalized its benchmark adjustment, and the latest data show that the economy has now added private sector jobs for 35 straight months, and a total of 6.1 million jobs have been added over that period. In 2012, private businesses added 2.2 million payroll jobs.  The first report of private sector job growth for January is that businesses added 166,000 jobs. Total non-farm payroll employment rose by 157,000 jobs last month. The average first report of monthly job growth in 2012 was 142,000, that is now revised to 181,000 jobs per month.

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