US President Joe Biden said the country’s labor market remained “strong” with the unemployment rate at 3.6% and the creation of more than a million jobs in the second quarter alone. In his statement on the second-quarter GDP report, Biden stressed that the U.S. economy was “on track” despite recession fears raised by the latest report released by the Commerce Department. According to the report, the US economy contracted again in the second quarter from April to June.
“Even though we face historic global challenges, we are on the right path and will navigate this transition stronger and more secure. Our labor market remains historically strong, with unemployment at 3.6% and more than a million jobs created in the second quarter alone,” US President Joe Biden said in a statement.
Biden said it was “not surprising” that the US economy was slowing as the Federal Reserve worked to bring down inflation, according to the statement released by the White House. He insisted that consumer spending in the United States continues to grow. He spoke of his meeting with the Korean Chairman of the SK Group earlier this week and noted that it was “one of the companies that have invested more than $200 billion in American industry since I took office, fueling a historic recovery in American industry.” Additionally, US President Joe Biden has stated that his economic plan is focused on reducing inflation without the need to give up all the economic gains made by the US. Biden’s statement came just days after he said the US economy “will not be in recession.” He added: “But I don’t think we’re going to – God willing, I don’t think we’re going to see a recession.”
US GDP falls in second quarter
Biden’s statement comes after the US Department of Commerce released a report showing the country’s gross domestic product (GDP) fell at an annual rate of 0.9%. The drop in GDP follows an annual decline of 1.6% observed from January to March. The decline in real GDP shows a decline in private inventory investment, residential fixed investment, federal government spending, state and local government spending, and non-residential fixed investment, the statement said. release published by the US Bureau of Economic Analysis. The Bureau of Economic Analysis noted that the decline in private investment in inventory was caused by a decline in retail trade. In addition, the decline in residential fixed investment was caused by the decline in “other” structures, including brokerage commissions. According to AP, the report comes at a time when consumers and businesses are struggling with inflation and rising loan costs.