Weekly Economic Update: October 9 – October 13, 2017
CHART OF THE WEEK
Declining Entrepreneurship
Leading up to the recession that began in 2007, the business startup rate dropped precipitously from 10.8% in 2006 to 7.8% by 2010, and averaged only about 8% since then. The Census Bureau recently reported that there were 414,000 new businesses in 2015. A recent Economic Innovation Group (EIG) study estimated that U.S. startups averaged 511,000 per year between 2000 and 2006. An earlier EIG study (p. 29), found that each new business creates an average of six new jobs. In 2015 alone, the missing startups translate to 600,000 missing jobs.
Last week’s JEC hearing examined how pro-growth tax reform could help to increase new business formation in America.
LAST WEEK
News & Commentary Weekly Highlights
Forbes: GOP Tax Framework Is A Pay Raise For Middle Class Families
Columbus Dispatch: Columbus CEO says simpler tax code would help start-ups
Economics21: If Congress Wants to Help Families, It Should Reform Corporate Taxes
CEI: Red Tape Rollback: Trump Least-Regulatory President Since Reagan
Wall Street Journal: U.S. Economic Expansion is Unevenly Spread, Study Says
JEC Releases
Tiberi Statement on September Jobs Report
Tiberi: Budget Paves Way for a Tax Code Built For Growth
Tiberi: Tax reform done right will grow jobs and grow paychecks…our future prosperity depends on it
JEC Hearing
The Startup Slump: Can Tax Reform Help Revive American Entrepreneurship
Top Economic Indicator Highlights
Employment Situation (September 2017)
Category |
September |
August |
July |
Nonfarm payroll jobs (thousands) |
-33 |
169 |
138 |
Headline unemployment rate (U-3) |
4.2% |
4.4% |
4.3% |
“True” unemployment rate (U-6) |
8.3% |
8.6% |
8.6% |
Noteworthy: BLS’s establishment survey, which does not count employees who did not work during the week the survey is conducted (the week Hurricane Irma made landfall) as employed, reported that 33,000 nonfarm payroll jobs were lost in September. The household survey, which is less sensitive to extreme weather effects, reported that the headline unemployment rate (U-3) was the lowest since February 2001 and the “real” unemployment rate (U-6) was the lowest since June 2007 (6 months before the last recession began).
THIS WEEK
Upcoming Economic Data and Events
Monday
No releases
Tuesday
Survey of Consumer Expectations (11:00am)
Wednesday
Job Openings and Labor Turnover Summary (JOLTS) (10:00am)
Federal Reserve FOMC Meeting Minutes (2:00pm)
Thursday
Producer Price Index (8:30am)
Friday
Advance Retail Sales (8:30am)
Consumer Price Index (8:30am)
Real Earnings (8:30am)
Business Inventories (10:00am)
Michigan's Surveys of Consumer Sentiment (10:00am)