June 6, 2008
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Treasury Economic Update 6.6.08

"Today's jobs data reflect the slow growth of the past two quarters and the headwinds the U.S. economy faces from energy prices, the housing correction, and credit market strains.  We expect the stimulus payments now going out to have a meaningful impact in supporting family and business spending this year while we work through the current challenges."
Assistant Secretary Phillip Swagel, June 6, 2008

Employment Fell in May: 

Job Growth: Payroll employment fell by 49,000 in May, following a decrease of 28,000 in April. The United States has added about 8 million jobs since August 2003.  Employment increased in 41 states and the District of Columbia over the year ending in April. (Last updated: June 6, 2008)

Unemployment: The unemployment rate was 5.5 percent in May, up from 5.0 percent in April.  (Last updated: June 6, 2008)

Signs of Economic Strength Include Exports and Low Inflation:

Exports: Strong global growth is boosting U.S. exports, which grew by 8.8 percent over the past 4 quarters. (Last updated: May 29, 2008)

Inflation: Core inflation remains contained.  The consumer price index excluding food and energy rose 2.3 percent over the 12 months ending in April. (Last updated: May 14, 2008)

The Economic Stimulus Package Will Provide a Temporary Boost to Our Economy:

The package will help our economy weather the housing correction and other challenges. The Economic Stimulus Act of 2008, signed into law by President Bush has two main elements--stimulus payments so that working Americans have more money to spend and temporary tax incentives for businesses to invest and grow.  Together, the legislation will provide about $150 billion of stimulus for the economy in 2008, providing a meaningful boost to the U.S. economy in 2008. (Last updated: February 29, 2008)

Pro-Growth Policies Will Enhance Long-Term U.S. Economic Strength:

We are on track to make significant further progress on the deficit. The FY07 budget deficit was down to 1.2 percent of GDP, from 1.9 percent in FY06.  Much of the improvement in the deficit reflects strong revenue growth, which in turn reflects strong economic growth.  Looking ahead, higher spending on entitlement programs dominates the future fiscal situation; we must squarely face up to the challenge of reforming these programs. 

www.treas.gov/economic-plan