Press Release
☷Remarks by National Economic Advisor Lael Brainard Today s Strong Recovery Is Laying Solid Foundations for the Future
White House ( By Press Release office)
Feb 17,2024
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Instead of the predicted recession , we ' ve actually made progress in fixing supply chain issues and other pandemic - related problems , which has helped bring down inflation . This , along with the government and private sector working together , has led to a faster recovery and lower inflation than other countries . Overall , our economy is looking up , with improvements in the job market , business growth , and investment—all of which bode well for our future growth . So let ' s keep building on this momentum and aim for long - term economic growth that benefits everyone . Right now , the U . S . economy is in better shape than we predicted a year ago , and we ' re doing better than in past recoveries . Inflation has dropped to around 2 percent , while we ' re still seeing solid growth and low unemployment . It ' s pretty remarkable that inflation has fallen so much while the economy has been growing and unemployment has stayed low . It ' s a rare combination that we haven ' t seen before . Hey everyone , it ' s great to be here at the 40th Annual NABE Economic Policy Conference . It ' s a good time to take stock of our economy ' s recovery . We can all agree that the U . S . recovery has been stronger than expected after the challenges of the pandemic and rising food and energy prices . And it looks like we ' re on track to build a solid foundation for the future , with businesses thriving , more people in the workforce , and increased investment—all thanks to President Biden ' s legislation . The strong recovery of the labor market has attracted more people to enter the workforce and resulted in a significant reshuffling of jobs and workers . Despite projections from the Congressional Budget Office that unemployment would be at 4 . 6 percent by the end of 2023 , it has remained below 4 percent for the past two years , thanks to the actions taken by this Administration . The Administration ' s policies have also encouraged a record number of people to re - enter the labor force , including by providing crucial support for childcare and household finances . Prime age employment for women reached its highest level ever in 2023 , reflecting changes in work patterns post - pandemic and the President ' s commitment to childcare support . Before the pandemic , business growth and job reallocations were on a decline , which negatively affected overall productivity . However , since the pandemic , there has been an increase in new business entrants , especially outside of central business districts , leading to more job opportunities . This demonstrates confidence in the economy and could have long - term benefits if it continues . In addition to the American Recovery Plan , the Administration ' s efforts have supported a strong labor market recovery and allowed the labor supply to meet the demand . Prime age labor force participation has surpassed pre - pandemic levels since February 2023 , which is a remarkable achievement considering it took over 12 years to reach the previous peak after the global financial crisis . Many economists were concerned about the long - lasting effects on the labor market due to the recession . However , it appears that this recovery has avoided much of the negative impact seen in previous recessions , as employment levels , labor force participation rates , and real GDP are all higher than projected even before the pandemic . Since President Biden took office , there have been a whopping sixteen million business applications filed , making it the strongest three years for new business applications in the past 20 years . This surge in entrepreneurship has resulted in many of these applications turning into actual businesses that are hiring workers . Small businesses , in particular , have been thriving , adding an average of 739 , 000 new jobs each quarter since the President came into office . Women and minority owned businesses have also played a significant role in this surge . President Biden has shown unmatched support for small businesses and startups through various initiatives , such as expanding access to credit and federal procurement , as well as ensuring universal access to high - speed internet . There have been a lot of job changes lately , which has led to higher wages , new skills , and better opportunities . Productivity has been improving , surpassing other G7 economies . This has had a positive impact on household finances , with real wage growth at its highest in over 50 years and people reducing their debt . Business investment has also been strong , thanks to President Biden ' s recent legislative achievements . This is a significant improvement compared to past economic cycles . Additionally , there are signs that investment is increasing in communities that have been neglected in the past . For example , the Treasury Department found that more than 70% of clean energy investments announced since the Inflation Reduction Act are going to communities with lower - than - average household incomes , college graduation rates , and employment rates . This shows that we are making progress in our recovery and bringing down inflation . The current improvements in businesses , the labor force , and investments could help create long - lasting economic growth that benefits everyone . As the President says , this is the type of growth that gives working families more room to breathe and more opportunities .
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