April 4, 2008
HP-905

Treasury Economic Update 4.4.08

"The rebate checks and investment incentives in the stimulus package will provide important support to family and business spending at a time when a broad range of indicators, including today's employment report, point to a slowing economy."
Assistant Secretary Phillip Swagel, April 4, 2008

Employment Fell in March: 
Job Growth: Payroll employment fell by 80,000 in March, following a decrease of 76,000 jobs in February. The United States has added 8.0 million jobs since August 2003.  Employment increased in 43 states and the District of Columbia over the year ending in February. (Last updated: April 4, 2008)
Low Unemployment: The unemployment rate rose to 5.1 percent in March from 4.8 percent in February.  Unemployment rates declined or remained steady in 24 states over the year ending in February. (Last updated: April 4, 2008)
 
Signs of Economic Strength Include Exports and Low Inflation:
Exports: Strong global growth is boosting U.S. exports, which grew by 8.4 percent over the past 4 quarters. (Last updated: March 27, 2008)
Inflation: Core inflation remains contained.  The consumer price index excluding food and energy rose 2.3 percent over the 12 months ending in February. (Last updated: March 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--temporary individual tax relief 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 tax relief for the economy in 2008, leading to the creation of over half a million additional jobs by the end of this year. (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