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The Recession Officially Ended Last June

So says the National Bureau of Economic Research’s Business Cycle Dating Committee -- a group of economists charged with officially determining whether the

Jul 31, 2020
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So saysthe National Bureau of Economic Research’s Business Cycle Dating Committee — a group of economists charged with officially determining whether the economy is in a state of expansion or contraction:
The Business Cycle Dating Committee of the National Bureau of Economic Research met yesterday by conference call. At its meeting, the committee determined that a trough in business activity occurred in the U.S. economy in June 2009. The trough marks the end of the recession that began in December 2007 and the beginning of an expansion. The recession lasted 18 months, which makes it the longest of any recession since World War II. Previously the longest postwar recessions were those of 1973-75 and 1981-82, both of which lasted 16 months.
**In determining that a trough occurred in June 2009, the committee did not conclude that economic conditions since that month have been favorable or that the economy has returned to operating at normal capacity. Rather, the committee determined only that the recession ended and a recovery began in that month. **
A recession is a period of falling economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. The trough marks the end of the declining phase and the start of the rising phase of the business cycle. Economic activity is typically below normal in the early stages of an expansion, and it sometimes remains so well into the expansion.
Of course, the fact that the recession technically ended means little to the millions of businesses and workers still suffering. But now we can officially gauge how far behind economic growth the labor-market recovery is trailing:
Recessions-480x326.png
Recessions-480x326.png
Employment never returned to where it was after the eight-month 2001 recession, caused by the stock and tech bubbles: The unemployment rate continued to tick up for two years after that recession’s technical end, and dwindled down only slowly. And now, the jobs gap is even greater.
Dexter Cooke

Dexter Cooke

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Dexter Cooke is an economist, marketing strategist, and orthopedic surgeon with over 20 years of experience crafting compelling narratives that resonate worldwide. He holds a Journalism degree from Columbia University, an Economics background from Yale University, and a medical degree with a postdoctoral fellowship in orthopedic medicine from the Medical University of South Carolina. Dexter’s insights into media, economics, and marketing shine through his prolific contributions to respected publications and advisory roles for influential organizations. As an orthopedic surgeon specializing in minimally invasive knee replacement surgery and laparoscopic procedures, Dexter prioritizes patient care above all. Outside his professional pursuits, Dexter enjoys collecting vintage watches, studying ancient civilizations, learning about astronomy, and participating in charity runs.
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