Economic Report of the President 2016

Source: Executive Office of the President, Council of Economic Advisers, February 2016

The U.S. economic recovery entered its seventh year in 2015. Our businesses created 2.6 million jobs in 2015 and the unemployment rate fell to 5.0 percent, half its level in fall 2009, far faster than forecasters expected. Private domestic final purchases—the most stable and persistent components of economic output—rose 2.7 percent over the four quarters of the year, bolstered by solid personal consumption, strong residential investment, and record-setting investment in research and development. Health care price growth remained at low levels not seen in nearly five decades as the Nation’s uninsured rate fell below 10 percent for the first time ever. Overall, consumers were more confident about the economy than in any year since 2004. Nominal wage growth remained too low, but still grew faster in 2015 than at any time since the recovery began. While more work remains to be done on each of these fronts—especially in terms of wage growth—the U.S. economy exhibited substantial strength throughout the year. ….