National Bureau of Economic Research Calls End to Recession in June 2009, Longest Since 1930s; Jobs Recovery Still Slow.
It’s official: The 2007-2009 recession, which wiped out 7.3 million jobs, cut 4.1% from economic output and cost Americans 21% of their net worth, marked the longest slump since the Great Depression.The recession that started in December 2007 ended in June of last year, according to the NBER, but weaknesses still abound for the U.S. economy. Sara Murray discusses. Also, Neal Boudette discusses the possibility that China’s biggest automaker may seek a stake in General Motors, which is now preparing for a post-bankruptcy IPO .The end of the recession occurred in June 2009, 18 months after the economy began sliding into a downturn in December 2007, said the National Bureau of Economic Research’s Business Cycle Dating Committee, a group of academic economists that determines the widely accepted benchmarks for U.S. recessions. The next-longest postwar slumps were those of the early 1970s and the early 1980s, both of which lasted 16 months.But while the declaration marks a milestone, the economy still faces stubbornly slow growth and thus persistently high joblessness. That point was driven home by a report Monday from the Organization for Economic Cooperation and Development in Paris, which said it doesn’t expect the U.S.’s unemployment rate to fall to prerecession levels until at least 2013.
By Sara Murray, Sept. 21, 2010 WSJ