When Did the Recession End?

by Ryan

Although it may not feel like it, the recession has been over for quite some time. In fact, 2011 has started off with a bang, the Dow Jones just crossed 12,000 and reached highs not seen since 2008, employers are beginning to hire, albeit slowly, but for many they’re just not feeling the optimism that 2011 is starting to sprout.

The Recession Ended When?

Most sources that I read seem to peg the end of the recession towards last summer (2010) sometime. However, the National Bureau of Economic Research indicated the the trough of the downturn occurred in June of 2009 so we’re clearly long gone from bottom, but at the same time, we’re still quite a distance from the potential top.

Are we There Yet?

The current economic situation reminds me of a family vacation in which the kid in the back seat is constantly saying “are we there yet, are we there yet?” From the majority of articles I’ve read online the consensus is that 2011 will continue with slow growth and that it won’t be until 2012 that we see a noticeable recovery in terms of jobs. Therefore, I think the kid in the backseat is going to become exceedingly annoying in 2011, but by 2012 we’ll hopefully reach the vacation destination.

To gain some perspective an article in US News discussed the time it took to recover from the 2001 recession:

“It took 21 months for employment to drift down to its low point and turn upward again. That might signal that we’re doing better now than during the “jobless recovery” that followed the 2001 recession.”
Source

However, the unemployment rate for the 2001 recession hit a max at 6.3% while we’re currently sitting at about 9.1%

In the meantime the buzzwords may continue to be tax cuts, stimulus, and unemployment. Much like your neighbor loosing your job signals a recession, perhaps your neighbor finally finding a job this year will signal the realization of a recovery. “Are we there yet, may still be the question for 2011.”

Have you noticed an upswing in the economy where you live, or are things remaining stagnant?

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{ 3 comments… read them below or add one }

Invest It Wisely February 3, 2011 at 8:51 am

The important question is whether this is another crack-up boom or a sustainable return to growth. I think we do see some seeds of a real recovery, but how much of that is overshadowed by the same mistakes that got us into this mess in the first place?
Invest It Wisely´s last blog post ..我祝你们新年快乐!

smcopywrite February 6, 2011 at 6:29 pm

the recession is probably over for all of the companies that received bail out money but i doubt the 11% of empty houses sitting along city streets feel that recession is over.
i believe this is definitely one that we need a poll on. many people in america are still waiting to feel the effects of the recession being over. the unemployment rate is reflected as the amount of people that are collecting unemployment. shouldnt we count the number of people who had their unemployment stopped when the new congress took session? i get carried away. great post by the way!

Deette March 9, 2011 at 1:59 pm

I was wondering the same thing and wrote about it some months ago on my blog…. now I am hearing about the “double dip” recession. I just know that I am going to keep doing what I am doing and paying off my CC debt and building my savings account.
Have A Fabulous & Frugal Day!!!
Deette´s last blog post ..31 Fabulous Uses For Vinegar

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