Friends,
We hope you had the opportunity to watch President Obama’s economic address at Kellogg Business School on Thursday. As the President emphasized, with your help, business has added 10.3 million jobs over the past 55 months. It’s the longest streak of job growth on record. Just yesterday, the Labor Department announced the unemployment rate fell even further to 5.9% with 248,000 jobs added in September. More people in the U.S. have gone back to work than Europe, Japan and every other advanced economy combined. We’ve reduced the deficit from 9.8% of our economy to near 3%.
Watch or read the President’s speech at Northwestern. Check out the infographic.
Keep reading for more information on recent economic data and other announcements.
As always, please don’t hesitate to be in touch with any questions or concerns at Business@who.eop.gov.
The White House Business Team,
Ari, Nate, Sam, and Quinn
The Employment Situation in September
Yesterday, the Labor Department announced 248,000 jobs added in September, with unemployment falling to 5.9%. The data underscore that six years after the Great Recession — thanks to the hard work of the American people and in part to the policies the President has pursued — our economy has bounced back more strongly than most others around the world. But even as we take stock of the progress that has been made, too many Americans do not yet feel enough of the benefits.
FIVE KEY POINTS IN YESTERDAY’S REPORT FROM THE BUREAU OF LABOR STATISTICS:
1. The private sector has added 10.3 million jobs over 55 straight months of job growth, extending the longest streak on record. Total nonfarm payroll employment rose by 248,000 in September, mainly reflecting a 236,000 increase in private employment. Private-sector job growth was revised up for July and August, so that over the past twelve months, private employment has risen by 2.6 million. So far this year, private employment has risen by nearly 2 million, on pace for the strongest year of private-sector job growth since 1998.
2. The overall unemployment rate fell to 5.9 percent in September, the lowest since July 2008, and is down 1.3 percentage point over the last year.
3. Total job growth in August was revised up by 38,000, continuing a pattern seen over the past several years of substantial upward revisions to the initial August report.
4. On the occasion of Manufacturing Day, we take stock of the major gains in the manufacturing sector seen over the course of the economic recovery — including more than 700,000 jobs added and an increase in the average workweek to levels not seen since World War II.
5. The pattern of job growth across industries in September was generally in line with recent trends.
Third Estimate of GDP for the Second Quarter of 2014
This revision confirms that economic growth in the second quarter was strong, and other recent data suggest that this momentum has continued into the subsequent months. While these indicators demonstrate that the economy has come a long way in recovering from the Great Recession, there is more work to do to both boost growth and ensure that growth translates into greater financial security for working families.
FIVE KEY POINTS IN THE REPORT FROM THE BUREAU OF ECONOMIC ANALYSIS
1. Real gross domestic product (GDP) increased 4.6 percent at an annual rate in the second quarter of 2014, the fastest pace since the fourth quarter of 2011, according to the third estimate from the Bureau of Economic Analysis. The strong second-quarter growth represents a rebound from a first-quarter decline in GDP that largely reflected transitory factors like unusually severe winter weather and a sharp slowdown in inventory investment. Growth in consumer spending and business investment picked up in the second quarter, and residential investment increased following two straight quarters of decline. Additionally, state and local government spending grew at the fastest quarterly rate in five years. However, net exports subtracted from overall GDP growth, as imports grew slightly faster than exports. Real gross domestic income (GDI), an alternative measure of the overall size of the economy, was up 5.2 percent at an annual rate in the second quarter.
See the remaining key points here.
The Cost of Doing This Kind of Business: What Corporate Inversions Mean for America’s Future
A good way to build a stronger economy is to create a fairer and more efficient tax code — one that promotes business investment and job creation in the United States. That is why the President has proposed business tax reform that will simplify the tax code by lowering the corporate tax rate and closing wasteful loopholes.
Congress has yet to act on the President’s proposal, and in the meantime, some companies continue to exploit unfair tax loopholes. One such loophole allows U.S. corporations to undertake an ‘inversion,’ whereby a company relocates their tax residence overseas, while changing very little else about its operations or business, in order to avoid paying taxes. With a simple change of paperwork, these companies can dramatically reduce their taxes, leaving other businesses and middle-class taxpayers to pick up the tab.
Dozens of U.S. corporations have taken advantage of the inversions loophole in recent years, and more are looking to follow suit. By renouncing their U.S. citizenship, these companies will cost our country nearly $20 billion over the next decade — critical dollars that could be used to grow and expand the middle class.
The Treasury Department is using its authority to take initial, targeted steps to discourage American companies from inverting by limiting the benefits they would receive from such action. You don’t get to pick your tax rate, and neither should corporations.
Take a look at why the President has called on Congress to close the inversion tax loophole:
U.S. Companies Leading to Reduce Emissions of HFC Climate Pollutants
Fulfilling a commitment under the President’s Climate Action Plan, the Obama Administration is announcing new private sector commitments and executive actions to reduce emissions of hydrofluorocarbons (HFCs), powerful greenhouse gases that exacerbate climate change. Taken together, these commitments will reduce cumulative global consumption of HFCs by the equivalent of 700 million metric tons of carbon dioxide through 2025. That’s an amount equal to 1.5% of the world’s 2010 greenhouse gas emissions — or, in other words, it’s like taking nearly 15 million cars off the road for 10 years.
HFCs, used primarily in air conditioning and refrigeration, are greenhouse gases with up to 10,000 times the global warming potential of carbon dioxide. Unless we act, U.S. emissions of these potent greenhouse gases would nearly double by 2020 and triple by 2030.
U.S. industries are leading the way in helping fulfill the President’s pledge by investing billions of dollars to develop and deploy the next generation of safe, cost-effective alternatives to HFCs, and by incorporating these climate-friendly technologies into the cars, air conditioners, refrigerators, foams and other products they manufacture and use.
For a full list of companies and commitments, please check out our fact sheet.
Be a Seed for Change 
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