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Unformatted text preview: hocks. GDP Components
The recession uncharacteristically affected
consumers because of the trifecta of impacts:
employment, income, and wealth. Total nonfarm
employment peaked in January 2008 (seasonally
adjusted) before losing 8.8 million jobs; 2.3 million
have since been recovered. Nonfarm total wages
dropped $282.9 billion, but have been on the rise
since Q2 2010. The S&P 500 decreased 57%, and
household wealth declined 33% from 2007 to
2009, but they have since increased 85% and 21%,
respectively. While these three metrics have demonstrated year-over-year growth, they have not
reached their previous peaks.
Post-recession consumer confidence, as measured
by the Conference Board, peaked at 72 in February
2011 before trending a bumpy descent to 39.8 in
October 2011—its lowest level since March 2009.
Despite dropping from the 10.1% unemployment rate recorded in October 2009 (seasonally
adjusted), unemployment has remained stubbornly high. October 2011 figures were at 9%, but
they should tick below this level in 2012. As the
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