Obama: Economy "Sobering," but Turning Around
"More likely than not, it will get a little worse before it gets better," said White House spokesman Robert Gibbs at his midday briefing today.
For months, the White House had been warning us to brace for a double-digit unemployment rate. It arrived this morning with a thud – like an anvil dropped from a 10.2-story building.
The jobless rate for October jumped four-tenths to 10.2 percent. President Obama calls it "a sobering number that underscores the economic challenges that lie ahead."
Speaking to reporters in the Rose Garden, he was quick to point out that "job growth always lags behind economic growth." Gross Domestic Product for the third quarter moved back into positive territory last week at 3.5 percent.
Nevertheless, Mr. Obama and his aides point out that the economy lost fewer payroll jobs in October than it did the month before. Job loss for October totaled 190,000 – down from a revised 219,000 in September. The administration views that as a hopeful sign.
Christina Romer, Chair of the President's Council of Economic Advisors, says the numbers continue "the steady trend of moderating job loss that began last spring." (The White House posted a chart illustrating the trend is available on its Web site here.)
Anticipating the latest hike in unemployment, Mr. Obama today signed legislation that extends unemployment benefits for up to 20 additional weeks. It also renews the tax credit for home buyers through April of next year.
He called it a bill "that will help grow our economy, save and create new jobs and provide relief to struggling families and businesses."
But Republicans see rising unemployment as an issue with which to attack the president's policies.
"With so many families looking for work, it is time the Obama administration stop spreading their phony 'saved or created' talking points and start creating the dependable jobs America needs," said Republican National Committee Chairman Michael Steele, in a written statement issued the moment the unemployment report was issued at 8:30 this morning.
Steele said Mr. Obama "promised jobs during his campaign for president, and the elections in Virginia and New Jersey on Tuesday were a clear referendum on his failure to deliver on this promise."
In the Rose Garden, Mr. Obama again said he's confident the nation's economy will recover and that "we're moving in the right direction."
"I promise that I won't rest until America prospers once again," he said.
