October 15th, 2009
01:12 PM ET
5 years ago

Cost to create one stimulus job: $71,500

NEW YORK (CNNMoney.com) - The White House unveiled Thursday the first hard data on how many jobs the $787 billion recovery act has created.

So far, 30,383 jobs have been created by companies that have gotten $2.2 billion worth of stimulus contracts directly from the federal government. That equates to $71,500 per job based on just the funds that have been distributed.

These firms have been awarded a total of $16 billion.

Stimulus-fueled job creation has become a very controversial issue. The White House has faced blistering attacks by Republicans, who contend that the recovery act has failed to live up to its promise to put Americans back to work.

The Obama administration downplayed the reports released Thursday, saying they represent just a small sliver of the stimulus that's been spent, since the massive recovery act was enacted in February. The first reports detailing the number of stimulus jobs created or saved were submitted last weekend by
recipients of stimulus-funded contracts, grants and loans.

"It is too soon to draw any global conclusions from this partial and preliminary data, as it reports on just $16 billion of the $339 billion in Recovery Act efforts before September 30th, but the early indications are quite
positive," said Jared Bernstein, chief economist for Vice President Joe Biden.

"The direct count by Recovery Act recipients of jobs created or saved from this small percentage of the Recovery Act exceeds our projections."

The majority of stimulus funds spent so far have gone to state and local governments. Their reports will be released on Oct. 30, though some governors have already revealed preliminary data. In California, for instance, stimulus funds received by state agencies have created or saved more than 100,000 jobs.

soundoff (46 Responses)
  1. ICARE

    Oh stop it!!!! 5 trillion dollars spent by the last administration created 10% unemployment. If that is the standard, Obie is doing great!

    October 15, 2009 01:14 pm at 1:14 pm |
  2. Wake Up

    1. It's a lie
    2. Creating federal government jobs will cost us more and more every year!
    3. The jobs that have been created are temporary and governmental
    4. Stimulus was a payback to Obama cronies.

    Less govt. now.

    October 15, 2009 01:15 pm at 1:15 pm |
  3. Sniffit

    More superficial analysis from the monkeys in a media outlet's basement who were given an abacus and some numbers to play with.

    October 15, 2009 01:16 pm at 1:16 pm |
  4. mark

    30 thousand jobs, what a joke...cutting corporate taxes would have created infinitely more jobs...

    October 15, 2009 01:16 pm at 1:16 pm |
  5. Peggy - TX

    President Obama, faced with an unprecedented economic crisis, acted quickly and effectively stopped the imminent slide of our economic system into the abyss. Had he not acted as quickly, we would now be stuck in a full blown depression and it would takeconsiderably more mony to dig out of it.

    Bottom line” President Obama pulled our collective asses out of the fire.

    October 15, 2009 01:20 pm at 1:20 pm |
  6. gt

    what a waste of money... i am sure the pres, will get another nobel award for economics....ugh....

    October 15, 2009 01:21 pm at 1:21 pm |
  7. j

    Yes, but you have to take into account all the bonuses we paid the execs. Doesn`t take many million $$$ bonuses to add up.

    October 15, 2009 01:22 pm at 1:22 pm |
  8. Randolph Carter, I'm no economist, but...

    Boy, am I relieved to see Goldman Sachs' profits are back. I was really concerned for them for a while there. Now they can get back to raking in billions while producing nothing of real value. I can't wait for all those profits and dividends to start trickling down to us little people in the form of secure, decently paying jobs. Oh wait..... Have a nice day!

    October 15, 2009 01:22 pm at 1:22 pm |
  9. Dutch/Bad Newz, VA

    Republicans can pout all they want. The stimulus was not only intended on making jobs, but to help save them as well. Why doesn't any media outlet report on how many jobs were SAVED due to the stimulus bill. I still have a job because my CEO got some stimulus relief. Where are those numbers CNN??????

    October 15, 2009 01:23 pm at 1:23 pm |
  10. Ron

    Great use of our money, huh?

    October 15, 2009 01:24 pm at 1:24 pm |
  11. carlo

    I'll bet the person who gets that job doesn't care how much it costs, neither does their family. A healthcare CEO makes $57,000 an hour with our money, but I don't see you doing any tickers on that.

    October 15, 2009 01:24 pm at 1:24 pm |
  12. Eric in Denver

    Wow 71,500 per job. That seems to be a very poor investment. But that is par for the course for the Obama administration. Oh wait I forgot they have saved 50 million jobs or something close to that I am sure. Can this man do anything right??????

    October 15, 2009 01:25 pm at 1:25 pm |
  13. LacrosseMom(stuck in moderation)

    A History Lesson for the GOP:

    Last year we were losing, 700,000 JOBS each month.

    When President Obama took Office the job loses continue, but DID NOT START WITH HIM.

    Job Loses were the fault of the Bush Regime who was warned in 2007 of the impending Economic Crisis, and choose to do ...... NOTHING.

    September's job loss numbers, was 263,000! Down from..... 700,000 on January 20th 2009, when President Obama took Office.

    Its still tough, however, it IS slowing. A recovery is on the way. We need to be patient, the Bush Economic Disaster did not happen overnight, nor will it be solved overnight!hjjjjjj

    October 15, 2009 01:26 pm at 1:26 pm |
  14. Bob in Pa

    I would say take back the 71,000 and split it between two newly unemployed people and pay them as iff it were salary. I'm sure that would go much further in moving the economy and eventually creating more jobs. Pitiful performance by Prez O and his failing Congress flunkies.

    October 15, 2009 01:28 pm at 1:28 pm |
  15. Matt from Boston

    ...and those numbers are generous. The government requires any company that receives stimulus money to fill out forms that state how many jobs the money created and how many jobs the money saved. Obviously, there's no way to determine what the true number is and companies have been overstating the numbers to ensure they receive more money in the future. This is another example of politicians playing politics and manipulating the system. I'm sure some people will fall for this misleading data but anyone who does the research will know what they truly mean...nothing.

    October 15, 2009 01:28 pm at 1:28 pm |
  16. Emily

    Here is a thought to help with unemployment. All these companies that have outsourced to other countries should be taxed at a much higher rate. There extra taxes would pay for SSI and unemployment. If they agree to close everything in other countries and bring the jobs back to the United States then they get tax cuts. That would bring more jobs and we would have less people on unemployment and welfare.

    October 15, 2009 01:28 pm at 1:28 pm |
  17. Death Panel Sarah

    Don't forget, the economy is moving again, the dow is over 10,000, and in record time!!

    October 15, 2009 01:30 pm at 1:30 pm |
  18. Dave

    Want to bet that these so called "created jobs" do not pay the worker $71,500. What a total fiasco this "stimulus" bill has been and the best thing that could happen going forward is to cancel the remainder of this wasteful spending.

    October 15, 2009 01:30 pm at 1:30 pm |
  19. J

    And how many jobs were saved??

    Way to put NOTHING into context CNN.

    October 15, 2009 01:32 pm at 1:32 pm |
  20. DianeR PCFL

    The blistering attacks from Republicants' are to camoflage their direct responsibility for dstroying the economy' and the resulting loss of jobs, as well as their do-nothing attitude and failure to offer any solutions other than to propose more tax cuts and no way to pay for them.

    October 15, 2009 01:35 pm at 1:35 pm |
  21. John

    I am glad to see some jobs, but using the termanology of "saved or created," is just the sort of language that makes me not like lawyers. To twist words so that you are never wrong makes me think that you obviously don't think that I am very smart. Well, I am smart enough to find my way to the voting booth. 30,000 jobs, we have 30,000,000 unemployed.

    October 15, 2009 01:38 pm at 1:38 pm |
  22. PK

    Yes, they might be able to track the $2.2 billion to the 30,383 jobs... but how do they account for the $2.2 Billion worth of wealth that was necessarily removed from the population through taxes? What about the administration costs of collecting the money, tracking the money, dispursing the money? How much productivity was lost?

    Sure, you can divide spending by jobs... but they always seem to forget that the money must first be taken from somewhere else.

    October 15, 2009 01:39 pm at 1:39 pm |
  23. Fools and their freedoms are soon parted

    well, that is cost effective isn't it? Hope Biden uses THAT # in MO.

    October 15, 2009 01:39 pm at 1:39 pm |
  24. 2010 can't get here fast enough

    That seems like such a bargain for a nitwit liberal who HAD NEVER RUN ANYTHING in his life or balanced a budget, no city, no state and no business experience.

    Actually he has run something over and over and over, his mouth, and he even needs his binkyprompter to do that, side to side, there you go, you just won the Nobel prize for reading a prompter.

    When he was in charge of something, his OWN voting ability, he more often than not voted PRESENT (just like he is doing with healthcare and Afghanistan now).

    The ONLY facet in relation to job growth that has had any growth since the selected, elected and now protected one took over is GUBMENT.

    Congratulations progressives, you we warned about him, see you in 2010.

    October 15, 2009 01:40 pm at 1:40 pm |
  25. Paul

    Sad. Our government at work under DNC leadership and only getting worse.

    October 15, 2009 01:41 pm at 1:41 pm |
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