It has been reported by the Government of the United States (US) on 29 January, 2010 that its economy grew at the fastest pace in more than six years during the fourth quarter of 2009. The report specifically highlighted that the nation's gross domestic product (GDP), the broadest measure of economic activity, rose at a 5.7 percent annual rate in the fourth quarter. It is also understood that this growth was much stronger than expected and it provides us with another sign that a recovery in the economy is underway.

This growth can definitely be termed a good end to a terrible year. The growth in the fourth quarter was the highest since the third quarter of 2003. In contrast, the economy rose at a 2.2 percent annual pace in the third quarter of 2009.

However, the strong growth in the second half of 2009 can not overshadow the economy shrinking by 2.4 percent in 2009. That was the biggest drop in 63 years and signifies the first annual decline for the economy since 1991.

Of course, the GDP report does not mark an official end of the recession. That determination will be made by the National Bureau of Economic Research, and that group waits months, if not more than a year, to declare when recessions end and begin.

Nonetheless, two straight quarters of economic growth is a good sign to recovery, and most economists agree that the recession did end at some point in the middle of 2009. The Federal Reserve even uses the word “recovery” in the statement following its latest meeting in the last week of January, 2010.

Additionally, it is understood that the employment picture will brighten a little in 2010, with most employers saying they will hire this year and the percentage planning workforce reductions down a bit, according to a survey published 28 January, 2010. Towers Watson, a global human resources consultancy, said its survey of about 450 large and medium-sized businesses worldwide found that 92 percent of employers plan expand to payrolls this year.

At the same time, the survey found that 36 percent of employers are planning “targeted workforce reductions” this year, down from the 58 percent that have cut workers since the financial crisis began in 2008. “While there are signs of improvement, it's clear we're not going back to ‘business as usual’ anytime soon,” Laura Sejen, a rewards practice leader at Towers Watson, said in a statement. The survey was released a day after President Obama called on Congress to pass legislation aimed at boosting job growth.

The US unemployment rate remains at 10 percent and the nation has lost 7 million jobs since the economy went into recession. Not surprisingly, boosting employment tops the to-do list in Washington in 2010.

In his State of the Union address on 27 January, 2010, President Obama said his administration will focus on accelerating hiring in the short run and, in the longer term, on fostering sustainable jobs that grow wages. “Jobs must be our No. 1 focus in 2010, and that is why I am calling for a new jobs bill tonight," said Obama, which evoked applause from both sides of the political aisle. “People are out of work. They are hurting. They need our help. I want a jobs bill on my desk without delay”. As a result, lawmakers are expected to quickly turn the president's initiatives into legislation.

Overall, the whole world is hoping for an economic breakthrough of some sort.  The economic predictions mean nothing when you are not a part of the statistical growth.  In short, jobs are the only economic element that will make the recovery, mean something to all of us. (To view other commentaries on politics, economy and society, please visit www.dlambrose.org)

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