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U.S. Economic Development Administration Issues Statement On Fiscal Year 2023 Appropriation

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WASHINGTON — U.S. Assistant Secretary of Commerce for Economic Development Alejandra Y. Castillo issued the following statement on the Fiscal Year 2023 appropriations for the U.S. Department of Commerce’s Economic Development Administration:

“I am thrilled that President Biden has signed the Consolidated Appropriations Act, 2023 into law, appropriating $1.6 billion* to the U.S. Economic Development Administration (EDA) for Fiscal Year 2023 programming.

“This vital funding enables EDA to significantly expand its targeted and transformational economic development investments that stimulate private funding, create jobs, support our innovators and entrepreneurs, and help those impacted by natural disasters build back stronger.

“Implementation of this funding will strengthen our collective economic and national security, and improve our individual prosperity and wellbeing, enabling the United States to be the global leader in the industries of the future and increasing economic equity among regions across the country.

“EDA will target investments in innovation and competitiveness with a regional and place-based focus, building on the examples set by EDA’s Build to Scale, Build Back Better Regional Challenge, and Good Jobs Challenge programs. Specifically, the law provides:

  • $752.5 million* for grants authorized by Sections 27-30 of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3722, 3722a, 3722b, and 3723), as amended, across four programs:
    • $500 million for Regional Technology and Innovation Hubs (Section 28),
    • $200 million for the Recompete Pilot Program (Section 29),
    • $50 million for the Build to Scale program (Section 27), and
    • $2.5 million for the STEM Apprenticeships Talent Challenge (Section 30);
  • $500 million* for infrastructure and other long-term economic recovery efforts for areas impacted by natural disasters in 2021 and 2022; and
  • $363.5* million to fund EDA’s other Economic Development Assistance (EDAP) programs.

“We are grateful to Congress for continuing to place their confidence in EDA as we work to best serve our grantees and their constituents across the country. We are excited to continue to build on EDA’s proud and impactful legacy of spurring equitable, placed-based economic development. Working closely with an expanded network of stakeholders, we look forward to developing the most beneficial programs and making the targeted and transformational investments that build needed capacity and that enable exponential, long-term growth.

“We are excited that we can develop a plan and launch the Regional Technology and Innovation Hubs and Recompete Pilot programs that were authorized under the CHIPS and Science Act. These new programs will stimulate economic growth in communities that may not have had the opportunity to compete before — including communities of color and rural communities — delivering the impactful, place-based programing needed to widely stoke our innovation economy.

“EDA will continue to lead the federal government—and the nation—by designing and executing innovative and effective economic development programs. We will remain committed to promote innovation, cultivate entrepreneurship, help build a well-qualified workforce, and position our economic development partners to be more resilient, agile, and competitive in the global marketplace.”

*includes funding for administration and oversight

American Economy Added 199,000 Jobs in the Month of December 2021

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U.S. Secretary of Labor Marty Walsh issued the following statement on the December 2021 Employment Situation Report:

“Today, the Bureau of Labor Statistics reported that the American economy added 199,000 jobs in the month of December, and the unemployment rate was 3.9 percent, down from 4.2 percent in November. This marks the first time unemployment has been under four percent since the pandemic began, and the largest ever one-year drop in the unemployment rate on record. With strong, steady job growth every month of the Biden-Harris Administration, we added 6.4 million jobs in 2021, reaching 84 percent of the jobs lost at the start of the pandemic recovered, and empowering workers to secure higher wages, especially for low wage workers. 

“In the Department of Labor, we are focused on building an inclusive recovery that lifts up all workers and communities, and that means identifying and addressing persistent inequities as reflected in an increase in Black unemployment in December. We are investing in equity and diversity in job training programs and career services, strengthening health and safety, wage and anti-discrimination protections for the most vulnerable workers, and making sure the President’s Bipartisan Infrastructure Law creates good jobs for every community. We are devoted to empowering all workers morning, noon and night.

“This work is especially important as the Omicron variant of COVID-19 impacts communities across the country this month, including many workers and workplaces. We have the tools to keep people safe, including mask guidance, increased testing capacity, and vaccines that work to prevent severe illness. I urge anyone who is eligible and has not received a vaccine or a booster yet to visit vaccines.gov and find a vaccination site near you. And I urge all employers to provide the flexibility and support necessary to help workers get vaccinated, protect their health, and continue our historic, worker-centered recovery.”

Labor Secretary Walsh reacts to brand new jobs report, Economy added 210,000 jobs in the month of November

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WASHINGTON .D.C., Dec 3rd – U.S. Secretary of Labor Marty Walsh issued the following statement on the November 2021 Employment Situation Report:

“Today, the Bureau of Labor Statistics reported that the American economy added 210,000 jobs in the month of November, and the unemployment rate was 4.2 percent, down from 4.6 percent in October. With more people entering the job market and an unemployment rate approaching pre-pandemic levels three years ahead of projections, the Biden-Harris Administration continues to deliver a historic, worker-centered recovery. We are committed to an inclusive recovery and among the highlights of this report were major reductions in the unemployment rates for Black workers, Hispanic workers, and workers with less than a high school diploma. ”

“The President’s Bipartisan Infrastructure Law will drive more job growth in the months and years ahead, and at the Department of Labor we are focused on making sure those new jobs are good jobs with access for all through proven pathways like Registered Apprenticeship. Moving forward, the President’s Build Back Better plan is the key to both reducing the biggest costs working families face and increasing equity in our labor market by investing in the care needs that keep so many women, especially Black women, from fully participating in our economy. We are committed to supporting all workers and their families morning, noon and night. ”

“As the holiday season begins, to stay safe and keep our economy moving forward I urge everyone to remain vigilant about COVID transmission and committed to getting yourself and your family vaccinated and boosted as soon as you are eligible.”

New Data Strategy to Enhance Equitable Economic Growth, Spur Good-Paying Jobs for All Americans

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The strategic leverage of data will also provide increased competitive advantage to U.S. businesses and research institution. 

Today, U.S. Secretary of Commerce Gina M. Raimondo announced a series of tools and initiatives to execute the Department of Commerce’s Data Strategy for fiscal years 2021-2024. With representation from every bureau, Commerce’s Data Governance Board (CDGB) developed this innovative Data Strategy to address some of our most pressing equity challenges around job growth, distribution of resources, and other measures of economic well-being.

“The 2020 Census, which was carried out accurately and dutifully in the face of unprecedented circumstances by the civil servants here in Washington and their partners across the country, showed that people of color now represent more than two-fifths of Americans and over half of the nation’s youth,” said Deputy Secretary of Commerce Don Graves. “Here at Commerce, and across the federal government, we have an obligation to create economic conditions that recognize the power of diversity and favor the inclusion of all Americans, while using data to brighten the future of our nation’s children.”

“With women, particularly women of color, earning pennies on the dollar in wages compared to white men, and the number of working minority business owners suffering due to this pandemic, Commerce data is needed now more than ever to enhance equitable economic growth and help our communities build back better,” said Secretary Raimondo.” “By leveraging Commerce data, we will spur good-paying jobs, empower entrepreneurs to innovate and grow, and help all American workers and businesses to compete here at home and abroad.”

Several tools and initiatives are currently underway at the Department, relying on the exponential amount of data on the nation’s economy, population, and environment that the Department generates, collects, stores, and analyzes. Here are just a few of the exciting initiatives that will be enhanced by the new Commerce Data Strategy:

  • Making the Data Available and Accessible: Through the implementation of this strategy, the data tools within the Commerce Data Hub will enable insights to the nation’s economy and population, including demography, housing, socioeconomics, and businesses. These publicly available datasets and tools assist federal agencies and other entities in the equitable distribution of resources and identifying underserved communities to empower all Americans. The Commerce Data Hub will provide a Commerce-wide data inventory and search portal that will ultimately aggregate and promote all its data assets in one location showcasing each bureau’s specific data search capabilities
  • Driving Technological Innovation: The Opportunity Project (TOP) drives innovation by helping companies, non-profits, and universities utilize federal data to develop new technologies and innovative solutions which advance equitable economic growth. Currently, TOP has focused its efforts on challenges such as improving minority businesses’ access to capital (MBDA), tackling the climate crisis through climate-smart communities (NOAA), increasing content accessibility for multilingual communities (NYC Mayor’s Office), and others.
  • Democratizing Data: Commerce wants to empower communities to leverage data that will inform their decisions and drive lasting change. By producing a series of Data for Everyone Summits, we seek to partner with community organizations, advocacy groups, and government partners to understand the barriers to accessibility of government data and improve usability in underserved communities. Ensuring that individuals have the tools they need to effectively use government data. The Big Data Project (BDP) enables innovation in environmental services using NOAA data accessed through Cloud Service Providers (CSPs). Through public-private partnerships with CSPs, Commerce aims to democratize access to NOAA data by reducing and removing obstacles to the public use of NOAA data. With increased access to key data, communities have an enhanced capacity to implement a resilience plan that allows them to withstand and recover from the impacts of a changing climate. Using a data-driven approach for climate resilience is more crucial than ever.
  • Promoting Appropriate Date Use: The Department recognize the importance of protecting privacy, respecting intellectual property, addressing cybersecurity concerns, and fostering an ethical data lifecycle that minimizes algorithmic risk of unintended bias. The Census Bureau will soon be launching The Combating Bias Toolkit, which aims to curate a collection of tools that help mitigate and correct sources of bias in federal data.

America’s Strong Marine Economy Vital to Building Back Better

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America’s marine economy contributed about $397 billion to the nation’s gross domestic product in 2019 and grew faster than the nation’s economy as a whole, according to the most current results of the first official Marine Economy Satellite Account released today by two Department of Commerce agencies.

“America’s strong marine economy is absolutely vital for building back better,” said Secretary of Commerce Gina M. Raimondo. “President Biden sees the immense value and potential of strengthening America’s blue economy, and this administration will continue to take actions to combat the climate crisis, conserve our oceans, and protect our coastal communities.”

“These statistics show how powerful America’s blue economy is as a driver of jobs, innovation and economic growth,” said Ben Friedman, acting NOAA administrator. “This information will assist our nation’s economic recovery by helping policymakers, industry advocates, and organizations track and accelerate investments in target markets.”

For these statistics, experts from NOAA and the Bureau of Economic Analysis (BEA) described 10 sectors representing businesses dependent on the nation’s oceans, coasts and Great Lakes between the years 2014 and 2019. Marine-related gross domestic product grew 4.2% from 2018 to 2019, faster than the 2.2% growth of the total U.S. gross domestic product as measured in inflation-adjusted dollars. Businesses included in the report also generated a total of $665.7 billion in sales and supported 2.4 million jobs in 2019.

The 10 sectors ranked by their sales are:

  • Tourism and recreation, including recreational fishing ($235 billion)
  • National defense and public administration ($180 billion)
  • Offshore minerals ($93 billion)
  • Transportation and warehousing ($64 billion)
  • Commercial Ship and boat building ($31 billion)
  • Living resources, including commercial fishing and aquaculture ($27 billion)
  • Utilities ($12 billion)
  • Research and education ($10.4 billion)
  • Construction ($7.0 billion)
  • Professional and technical services ($6.3 billion)

“These statistics are further proof that our waters are vital for America’s economy,” said Nicole LeBoeuf, acting director of NOAA’s National Ocean Service. “It is nearly impossible to go a single day without eating, wearing, or using items that come from or through our ports and coastal communities.”

Last year, NOAA and BEA released the Ocean Economy Prototype statistics which covered 2014-2018 and were the most comprehensive measurement of the marine economy at the time. This year’s statistics offer improved national estimates for ocean, coastal, and Great Lakes-related economic activity by major sector, accounting for inflation. 

STATEMENT BY U.S. SECRETARY OF LABOR SCALIA ON THE SEPTEMBER JOBS REPORT

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WASHINGTON, DC – U.S. Secretary of Labor Eugene Scalia issued the following statement on the September 2020 Employment Situation Report:

“Today’s report shows 877,000 private-sector jobs added back in September, and an additional 145,000 jobs from July and August. However, the report reflects a seasonally-adjusted loss of 350,000 jobs in public and private education. Large gains were made in lower-wage jobs in retail and leisure and hospitality, and manufacturing added 66,000 jobs, its largest increase since June. ”

“More than half the jobs lost from the pandemic have now been restored, and the third quarter ended with a 7.9 percent unemployment rate, half the15.8 percent third quarter unemployment rate projected by the Congressional Budget Office in May.”

U.S. Economy Adds Another 224,000 New Jobs in June As Wage Increases Remain Strong

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The White House issued a press release said, The United States economy continues to flourish, according to the June Employment Situation Report released today by the Bureau of Labor Statistics (BLS). Total nonfarm payroll employment in June rose by 224,000 jobs, far exceeding market expectations (162,000). With July marking the longest economic expansion on record, it is a testament to the strength of the Administration’s economic policies that the economy continues to generate monthly job gains of this magnitude.

Including revisions for the months of April and May, the average pace of job growth has been a vigorous 192,000 jobs per month over the past year. In total, the economy has added more than 6 million jobs since President Donald J. Trump was elected. The June jobs report also reflects a rebound in job growth, suggesting that May’s revised outcome (+72K) was not a trend (see figure).

The education and health services industry, which added 61,000 jobs, experienced the largest job growth in June. Manufacturing jobs increased as well, gaining 17,000 jobs last month. Since the President’s election, the manufacturing industry has added more than 500,000 jobs.

The June report indicates that robust jobs growth is coupled with consistently strong wage growth. Nominal average hourly earnings rose by 3.1 percent over the past 12 months, marking the 11th straight month that that year-over-year wage gains were at or above 3 percent. Prior to 2018, nominal average hourly wage gains had not reached 3 percent since April 2009.

There is evidence that real wages are also growing when taking inflation into account. Based on the most recent Personal Consumption Expenditures (PCE) price index data from May, inflation in the past year was 1.5 percent, and based on the most recent Consumer Price Index (CPI-U) price data from May, inflation in the past year was 1.8 percent. (June inflation data is not yet available for either series.)

A separate household survey released by BLS shows that the unemployment rate ticked up to 3.7 percent in June—a change that is not significant—making June the 16th consecutive month at or below 4 percent. The Asian-American unemployment rate dropped to 2.1 percent, its lowest rate since at least 2003 when the current series began. The African-American unemployment rate ticked down by 0.2 percentage point to 6.0 percent, just above the May 2018 series low of 5.9 percent. (Consistent measurement began in 1972.)

There was also good news on the labor force participation rate—which includes people who are working and those looking for work—edged up by 0.1 percentage point to 62.9 percent and is 0.2 percentage point above the rate when the President was elected in November 2016. The labor force participation rate for prime-age adults (ages 25-54) which largely avoids the demographic effects of the aging population increased by 0.1 percentage point to at 82.2 percent—0.8 percentage points above its rate in November 2016 when the President was elected.

A prosperous economy stimulated by pro-worker policies is pulling workers off the sidelines. Despite the continued low unemployment rates over the past year, some workers may still be on the sidelines, a situation economists refer to as “labor slack.” Because labor market slack still exists, employment can continue to rise and the economy can continue to grow as workers reenter the labor force. In the second quarter of 2019, 73.7 percent of workers entering employment came from out of the labor force rather than from unemployment.

The June employment data portray an American economy that is humming along briskly, with a continued low unemployment rate, historic trends in job growth, and rising wages.

Foreign Direct Investment in the U.S. Rises in 2018

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Graphic on New Foreign Direct Investment Expenditures by Type, 1996-2018. (U.S. Bureau of Economic Analysis)

On July 2, the Commerce Department’s Bureau of Economic Analysis (BEA) released updated annual statistics on the amount and characteristics of new investments in the United States by foreign investors.

Expenditures by foreign direct investors to acquire, establish, or expand U.S. businesses totaled $296.4 billion in 2018, up 8.7 percent from $272.8 billion in 2017.

Additional highlights of the statistics on new foreign direct investment for 2018:

  • Expenditures for acquisitions were $287.3 billion, expenditures to establish new U.S. businesses were $5.3 billion, and expenditures to expand existing foreign-owned businesses were $3.8 billion.
  • Total planned greenfield investment expenditures—expenditures to establish new U.S. businesses and to expand existing foreign-owned U.S. businesses—for investments initiated in 2018, which include both first-year spending and planned spending in other years, totaled $30.8 billion.
  • Employment at newly acquired, established, or expanded foreign-owned businesses in the United States was 430,600 in 2018.

Job creation smashes expectations, unemployment rate falls to 49-year low

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The United States economy continued to thrive in April, with the unemployment rate dropping to 3.6 percent—the lowest unemployment rate since December 1969, according to the Bureau of Labor Statistics’ (BLS) household survey. April also marks the 14th consecutive month of the unemployment rate being at or below 4 percent.

The rapidly growing economy continues to benefit a wide range of demographic groups. The unemployment rate for adult women (20+) reached 3.1 percent in April, its lowest rate since 1953. The unemployment rate for Hispanics fell to 4.2 percent—the lowest rate since the series began in 1973. The unemployment rate for individuals with only a high school degree fell to 3.5 percent—matching the lowest rate since 2000. The unemployment rate for those with a disability fell to 6.3 percent in April—the lowest rate since the series began in 2008. Additionally, the unemployment rate for veterans fell to 2.3 percent—the lowest rate since the series began in 2000.

The U-6 unemployment rate, a broader measure of unemployment that includes those who are unemployed, marginally attached to the labor force, and working part-time for economic reasons, remained at 7.3 percent in April, matching the lowest U-6 rate since December 2000.

A separate survey from BLS, the Employment Situation Report, showed total nonfarm payroll employment in April rose by 263,000 jobs, far surpassing market expectations (190,000). In total, the economy has added over 5.8 million jobs since President Donald J. Trump was elected. The month of April continued the longest streak of growth on record.

Employment gains have exceeded 100,000 jobs in 27 of the 29 months since the 2016 election. Including revisions for the months of February and March, the average pace of job growth has been a healthy 218,000 jobs per month over the past year and 205,000 jobs per month so far in 2019. Job gains were predominantly concentrated in professional and business services (76,000 new jobs), education and health services (62,000 new jobs), and leisure and hospitality (34,000 new jobs). The construction sector added 33,000 new jobs in April, and has added 669,000 jobs since the 2016 election.

On top of the good news about job growth, the report indicates that wages are rising, too. Nominal average hourly earnings in April rose by 3.2 percent over the past 12 months, marking the 9th straight month that year-over-year wage gains were at or above 3 percent. Prior to 2018, nominal average hourly wage gains had not reached 3 percent since April 2009. Taking inflation into account, there is more evidence that real wages are also growing. Based on the most recent Personal Consumption Expenditures (PCE) price index data from March, inflation in the past year was 1.5 percent, and, based on the most recent Consumer Price Index (CPI-U) price data from March, inflation in the past year was 1.9 percent. This offers evidence that real wages are rising, and people are able to purchase more goods and services with their larger paychecks.

These most recent BLS surveys depict a strong American economy. Employment growth in April surpassed expectations with 263,000 new jobs, while the unemployment rate of 3.6 percent is the lowest rate in nearly half a century. With continued positive job growth, sustained low unemployment, and rising real wages, the economy continues to thrive.

U.S. employers added 304,000 jobs in January, soaring past expectations

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Treasury yields jumped on Friday after the Labor Department said the American economy added more than 300,000 jobs and more people entered the workforce in the month of January.

U.S. employers added 304,000 jobs in January, soaring past Wall Street’s expectations for an increase of 165,000 jobs, seemingly brushing off a 35-day government shutdown as investors braced for mixed results. It was the 100 straight month of gains.

The unemployment rate climbed to 4 percent from 3.9 percent, while the labor force participation rate rose slightly to 63.2 percent. Average hourly earnings, meanwhile, rose by 3 cents to $27.56. Over the year, average hourly earnings have increased by a total of 85 cents, or about 3.2 percent.

The report is also indicative that despite recent geopolitical turmoil — US-China trade tensions and uncertainty over the Brexit deal in Europe — the U.S. economy will manage to shake off any market volatility, according to Josh Wright, the chief economist for iCIMS and a former Federal Reserve staffer.

Wright, however, warned that the better-than-expected number could complicate the dovish narrative the Fed is currently pushing.

On Wednesday, policymakers at the U.S. central bank unanimously voted to keep the benchmark federal funds rate unchanged, while signaling a patient approach to future interest rate hikes.

“We still see sustained expansion of ecnomic activity, strong labor conditions and inflation near 2 percent,” Fed Chair Jerome Powell said at the time. “But the crosscurrents suggest a less favorable outlook.”

But the blowout jobs number could convince the Fed to reverse course before the end of the year, according to Wright.

“As the shutdown fades into the past (and if another one doesn’t do more damage), the Fed will lose one of its arguments for pausing, leaving it to rely on global headwinds, trade and Brexit uncertainty,” he said. “Financial conditions have already improved considerably. It’s going to be a rocky quarter or two for the U.S. central bank, with a lot of risk to its credibility. Yet if markets find the Fed credible, implied interest-rate volatility should be restrained.”

Jobs numbers follow a report released on Wednesday from payroll processing firm ADP, which revealed the private sector added 213,000 jobs in December, beating analysts’ expectations of 178,000 jobs.

Analysts anticipated that unemployment would hold steady at 3.9 percent, one of the lowest numbers in nearly 50 years, while forecasting the creation of 165,000 jobs, according to economists polled by Refinitiv (formerly Thomson Reuters). In December, job creation was revised to 222,000, down from the original better-than-expected 312,000.

Initially, the White House was bracing for a potentially negative jobs number in January when the Department of Labor releases the payroll data. However, U.S. labor officials said last week they would count the once-furloughed workers as employed because they’re getting paid retroactively once the government is up and running again.

However, the job creation was not coupled with robust wage growth; average hourly earnings rose just three cents on the month, or 0.1 percent, well below the 0.3 percent expected gain. Yields also jumped after the Institute for Supply Manufacturing said activity in the manufacturing sector expanded in January.

The short-term 2-year rate rose 5 basis points to 2.504 percent. The yield on the long-term 10-year Treasury note rose to 2.677 percent at 10:12 a.m. ET. Yields fall as bond prices rise.