A key measure of economic output fell for the second straight quarter, indicating the United States is in a recession. Last week on Thursday, it was announced that Gross Domestic Product (GDP) fell 0.9 percent in the second quarter from April to June.
According to the traditional definition of a recession, which is two consecutive quarters of GDP contraction, this new data means that the U.S. has entered a recession. In anticipation of this bad economic news, President Joe Biden’s administration has tried to redefine what a recession is, claiming that the U.S. has not yet hit a recession, according to the definition from the National Bureau of Economic Research (NBER).
The NBER’s definition states a recession is a “significant decline in economic activity that is spread across the economy and that lasts more than a few months.”
Regardless of how people define “recession”, this news is not good and does not paint a rosy picture of the economy that is being hit with record high inflation and rising interest rates.
Meanwhile, in Illinois, the unemployment rate continues to fall behind all surrounding states. Illinois’ economy added 18,800 jobs during the month of June, but its unemployment rate, which is now at 4.5 percent, is still the worst in comparison to neighboring states.
Indiana, Missouri, Iowa, and Wisconsin all had jobless rates below 3 percent while Kentucky is at 3.7 percent. In fact, Illinois’ 4.5 percent rate is the fifth worst in the nation.