Defining "recession" is not an easy task. In fact, there is somewhat of a dispute going on as to whether the state of Minnesota is in one. "It's somewhat in the eye of the beholder of the economist," is what Governor Tim Pawlenty told reporters Tuesday.
State Economist Tom Stinson says the "R" word is applicable right now. He says 2,300 Minnesotans lost their jobs in December, pushing the unemployment rate to a 7 year low, pushing the state into a recession. Governor Pawlenty's reply: "Tom Stinson tends to be a bit on the pessimistic side of things, to put it charitably."
We asked University of Minnesota economist V.V. Chari to define recession. He says the stock answer is 2 quarters of negative economic growth. "But it's not built in stone," he adds. "They define a recession as any period of extended decline. More recently they've focused on what's happening in employment," Chari explained.
We went to St. Paul's workforce center and asked James Clardy what it means to him. "It's a cuss word, definitely a cuss word. Recession, its something that's going to set you back," Clardy said. He was at the center looking for a job, he's been looking for work since February. "Just makes you wonder what's really going on, it's rough out here," he explained.
Nationally, economists say the recession could be coming. They say Americans are spending less, we're in a subprime mortgage crisis, and more and more people are looking for work.
"Yes it's a cause for concern, but it's not something that should drive us crazy," Chari said. Only time will tell. National numbers for the 4th quarter of 2007 will be released in a week or two.
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