We Need More Jobs

Six months after the last recession ended, the U.S. economy began growing at an annual rate of 3.8%, adjusted for inflation. And although it has slowed since then, real growth for the most recent quarter was 2.2%. That may not sound too bad, given that the U.S. economy has averaged about 3.25% after inflation since World War II. But following a recession, there is normally a period of nine to 18 months during which growth is exceptionally high. Within six months after the 1981-82 recession ended, for example, real GDP rebounded at a rate of at least 7% for more than a year. By contrast, the current recovery peaked only half a percentage point above what qualifies as average growth. As a result, there has never been a surge of job creation to make up for the jobs lost during the last recess