The unemployment rate rose to 9.4% in May and has risen by 4.5 percentage points since the start of the recession. Non-farm payroll employment fell by 345,000 jobs in May, moderation from an average decline of around 643,000 over the prior six months. Output in the economy, measured by the inflation-adjusted (real) gross domestic product (GDP) fell at a 5.7% annualized rate in the 1st quarter, following a 6.3% decline in the 4th quarter of 2008. While there have been tentative signs (green shoots) that the pace of economic contraction is diminishing and financial markets are in repair, significant downside risks remain. Threats to consumer spending, which accounts for over 70% of GDP, include continued declines in wealth and employment along with rising energy prices. There also remain risks to stabilization in financial markets, including, especially for mid-sized and small banks, rising delinquencies in commercial real estate loans.