2 Center for American Progress | Economic Snapshot: November 2013
The economy continues to grow slowly.
Gross domesic produc, or GDP, increased in he hird quarer o 2013 a an inﬂaion-adjused annual rae o 2.8 percen. Domesic consump-ion increased by an annual rae o 1.5 percen, housing spending subsanially grew by 14.6 percen, while business invesmen growh slowed o 1.6 percen. Expors increased by 4.5 percen in he ﬁrs quarer and governmen spending was essenially ﬂa wih an increase o only 0.2 percen.
Tese numbers show ha here is room o expand growh in all areas o he economy. Policy soluions should hereore aim o ease he srain o U.S. ﬁscal auseriy on he economy, creae ﬁscal cerainy, and inves in people, inrasrucure, and innovaion. 2.
The moderate labor-market recovery continues in its fourth year.
Tere were 6 million more jobs in Ocober 2013 han in June 2009. Te privae secor added 6.7 million jobs during his period. Te loss o more han 621,000 sae and local governmen jobs explains he diﬀerence beween he ne gain o all jobs and he privae-secor gain in his period. Budge cus reduced he number o eachers, bus drivers, ﬁreﬁghers, and police oﬃcers, among ohers.
Job creaion should be a op policy prioriy, since privae-secor job growh is sill oo weak o quickly overcome oher job losses and rapidly lower he unemploymen rae. A reorienaion o ax and spending policies o srenghen economic growh, raher han a blind obsession wih deﬁci reducion a all coss, could creae millions o jobs ha America’s middle class desperaely needs. 3.
Some communities continue to struggle disproportionately from unemployment.
Te unemploymen rae sood a 7.3 percen in Ocober 2013. Te Arican American unem-ploymen rae was 13.1 percen in Ocober 2013, he Hispanic unemploymen rae was 9.1 percen, and he whie unemploymen rae was 6.3 percen. Meanwhile, youh unemploy-men sood a 22.2 percen. Te unemploymen rae or people wihou a high school diploma icked up o 10.9 percen, compared o 7.3 percen or hose wih a high school degree, 6.3 percen or hose wih some college educaion, and 3.8 percen or hose wih a college degree.
Populaion groups wih higher unemploymen raes have sruggled disproporionaely more amid he weak
Economic growth over the ﬁrst four years of a recovery
G r o w t h i n d e x ( l a s t q u a r t e r o f r e c e s s i o n = 1 0 0 )
Number of quarters of economic recoveryRecovery after the Great Recession
March ’61March ’75December ’82March ’91December ’01June ’09
Authors’ calculations based on U.S. Bureau of Economic Analysis,
National Income and Product Accounts
(U.S. Department of Commerce, 2013). Calculations only done for recoveries that have lasted at least four years.
October 2013 unemployment rate by race
Source: U.S. Bureau of Labor Statistics,
Current Population Survey
(U.S. Department of Labor, 2013).