Center on Budget and Policy Priorities

Recession and Recovery

Chad Stone Statement on January Employment Report

"Today’s jobs report shows that job losses have slowed to a trickle compared with what they were in the months just before President Obama and Congress enacted the American Recovery and Reinvestment Act (ARRA) last February. But it also highlights the huge jobs deficit that remains the legacy of the longest and most severe recession since the Great Depression. Temporary recovery measures that extend or expand on ARRA remain vital to putting the economy on a path that will close that jobs deficit.

"Once a sustainable recovery is underway, policymakers must restore fiscal discipline and reduce the budget deficit to sustainable levels in order to promote long-term growth and prosperity."

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President’s Budget Requests $266B to Support Recovery

Some news outlets, focusing on the President’s budget request of $100 billion for a new “jobs initiative”, have reported that the budget proposes only $100 billion for temporary, economy-boosting measures. But, in addition to those funds, the budget includes $166 billion in temporary extensions of some provisions of the Recovery Act, which are contributing to economic recovery but will soon expire. Read more

Governors’ New Budgets Indicate Loss of Many Jobs if Federal Aid Expires

"Facing continued major budget problems and the end of most federal Recovery Act assistance halfway through their coming fiscal year, governors are proposing a new round of deep budget cuts that would increase unemployment and threaten the fragile economic recovery.

"Without further federal aid, the actions states will have to take to close their budget gaps could cost the economy 900,000 jobs. Congress is considering extending some assistance to states as part of forthcoming jobs legislation." Read more

Topics

Basics

A recession is a significant decline in the size of the U.S. economy lasting more than a few months, normally visible in a variety of economic indicators. Economic stimulus policies aim to avert a recession or lessen its severity by boosting the economy in the short term. The unemployment insurance system helps people who have lost their jobs by temporarily replacing part of their wages, typically for up to 26 weeks.

Policy Basics:
- Introduction to Unemployment Insurance

Featured Experts

Robert Greenstein

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Michael Leachman

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Chad Stone

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Paul Van de Water

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The Center examines the impact of changes in the economy on federal and state budgets, as well as the likely effectiveness of economic stimulus proposals. We also examine trends in employment and promote reforms to strengthen the unemployment insurance system.