As we head into the next year and the 112th Congress, understanding the data behind our economic recovery will be crucial if the economy is to grow and strengthen. A closer look at how states fared in 2010 as well as how they fared during the last four recessions can be a useful guide to both Republicans and Democrats who are serious about shaping strong, smart, and strategic job-creation policies in 2011.
Simply put, the Great Recession of 2007-09 was the worst post-World War II recession, and this fact is substantiated in a recent report by the U.S. Congress Joint Economic Committee.
Prior to the Great Recession, the 1981-82 recession was the deepest post-World War II recession. During that recession, job losses averaged 3.1% on a national basis. States like Michigan, Ohio, Oregon, and West Virginia experienced job losses that were twice the national average, with each seeing a decrease in payroll employment of at least 6.9%.
While severe, the 1981-82 recession doesn't really compare to the depth of the recent Great Recession. The national job loss average during the 2007-09 recession was 5.3%. 21 states experienced job losses above 5%, with Nevada experiencing an 11.6% decrease in payroll employment, Michigan and Arizona experiencing 9.8% decreases, and Florida experiencing an 8.9% decrease.
These job losses have devastated family savings accounts, put companies out of business, and forced states to slash public services.
The Great Recession ended in June 2009 and the high tide that brought soaring job losses began to change in 2010. Now, as the year comes to a close, we know that 46 states and the District of Columbia experienced net job gains in private-sector employment from January to November 2010.
We are moving in the right direction, but clearly not fast enough, as 15 million people are still out of work in our country, and millions of families continue to struggle to just get by -- to put food on the table, pay bills, and think of the better days to come.
The American people are frustrated that the federal government's actions have not completely turned our economy around, and that is understandable. Creating jobs, retraining workers, and rebuilding our economy is going to take time.
As I've chaired the Joint Economic Committee over the last two years, experts ranging from the Federal Reserve Chairman to renowned economists have testified that this recession was different and there is no silver bullet that will return our economy to prosperity overnight and create the millions of new jobs needed.
As Republicans assume control of the House on January 5th, I hope they will quickly recognize that it's time to move beyond campaign rhetoric on cuts in spending, taxes, and federal programs so that we can effectively work together to spur job creation and further economic growth.
We are currently trending in the right direction. Let's make a New Year's resolution to work together so that we can continue to encourage innovations, support entrepreneurs and small businesses, and ensure that unemployed Americans are afforded the benefits they deserve and provided with effective job retraining opportunities.
Congresswoman Carolyn Maloney represents parts of Queens and Manhattan in the House of Representatives, where she is Chair of the U.S. Congress Joint Economic Committee in the 111th Congress.