A new US economy survey suggests that the US economy has recovered, but still is not strong enough to attract new investment and create jobs.
The survey of US firms by research firm Fathom Capital Group also showed that the country has experienced the biggest drop in private sector employment since 2007.
According to the survey, the economy has contracted by 4.1% in 2016.
That is still far from recovery and it is likely to rise further, the survey found.
It also shows that while Americans are working harder and longer hours, they are still not creating enough jobs to cover the increasing costs of healthcare and pensions, the Fathom report said.
According the survey data, the US now has the second lowest ratio of private-sector jobs to the workforce in the world.
The report also found that while private- sector employment is up in the last 12 months, the share of the population in the workforce has shrunk by 0.4 percentage points to 29.4%.
The US economy was growing by 2.1%, down from a record rate of 3.5% in the year to the end of 2015.
Inflation, the cost of living and the amount of disposable income in the economy all fell over the period, the report said, with the cost-of-living index falling by 1.4% to 3.2%.
However, in the first three months of the year, inflation rose 2.9% to an annual rate of 1.9%.
The unemployment rate in the US dropped to 6.9%, down 0.1 percentage points from 6.8% in December.
The number of people living in poverty fell to 7.1 million from 7.2 million, the highest in the OECD.
The US also recorded the biggest fall in the number of working age Americans, down by more than 200,000 to 4.2% from 4.3%.