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Think Small for an American Recovery

Small businesses play an outsize role in the US economy, accounting for about half of all private-sector employment and nearly two-thirds of all net new job creation since 2000. And federal support for them is crucial to avoid a prolonged, anemic, and uneven recovery that leaves many marginalized communities behind.

BERKELEY – The US recovery is losing momentum. Job growth is slowing, the economy is still down 10.7 million jobs since February, and 36% of unemployed workers are now classified as “permanently unemployed.” The unemployment rate fell to 7.9% in September not because of an uptick in job creation, but because of an exodus of people from the labor force. Reflecting the dualism of the US labor market, the unemployment rates remain even higher for African-Americans (12.1%) and Hispanics (10.3%), and an additional 6-8 million people have fallen into poverty.

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