CBPP: Statement by Chad Stone, Chief Economist, on the January Employment Report

February 1, 2013

Employers continued to add jobs in January (see chart), but the economy must grow faster to bring unemployment down more quickly.  Instead, the recovery apparently has hit a soft patch, and both growth and job creation could slow further if policymakers let the automatic across-the-board budget cuts (known as “sequestration”) take effect on March 1 or replace them with other immediate budget cuts that further weaken demand for goods and services.