November 2nd, 2009
12:45 PM ET
4 years ago

Obama warns of more job losses despite economic uptick

President Barack Obama warned Monday that more job losses should be expected in the months ahead.
President Barack Obama warned Monday that more job losses should be expected in the months ahead.

WASHINGTON (CNN) - President Barack Obama warned Monday that more job losses should be expected in the months ahead despite recent signs of economic recovery.

He also called for "new models" of economic growth to help avoid a repeat of what he said was the debt-driven expansion of the past.

"We anticipate that we're going to continue to see some job losses in the weeks and months to come," the president said during a meeting with several of his top economic advisers.

There is "always a lag of several months between businesses starting to make profits again and investing again and them actually rehiring again."

Obama also said, however, he's confident "that having moved the economy on the right track ... there's no reason why we're not going to be able to not only create jobs, but the kind of sustainable economic growth that everybody's
looking for."

The White House has highlighted several indicators of economic stabilization over the past week. Among other things, administration officials have argued that the Democrats' controversial $787 billion economic stimulus program helped stave off a depression and spark 3.5 percent growth in the third quarter.

On Friday, the administration released a report claiming the program helped create or saved over 640,000 jobs.

Republicans questioned the validity of the White House report, saying it exaggerated the program's effectiveness. Each new job, critics charged, cost $248,000 to create.

The Commerce Department said construction spending rose unexpectedly in October by almost 1 percent. Economists surveyed by Briefing.com were anticipating a 0.5 percent decline.

Meanwhile, the National Association of Realtors reported pending home sales rose much more than expected, by 6.1 percent, in September. Analysts were looking for a 1.2 percent increase.

Unemployment, however, is currently close to 10 percent, and has continued to rise in recent months.


Filed under: Economy • President Obama
soundoff (33 Responses)
  1. rodney123

    Why havent these senators extended the unemployment stimulus its ridculous you just wait until election time im putting all those whom voted it down on every blog possible too let the american people know who cares about if you are out of work!

    November 2, 2009 03:14 pm at 3:14 pm |
  2. Mike Syracuse, NY

    Obama has taken Voodoo economics to a whole new level. He claims to have saved or created 640,000 jobs, yet unemployment figures say that since Obozo was sworn in we've lost 3 million jobs.

    November 2, 2009 03:16 pm at 3:16 pm |
  3. Who put the twit in twitter? Sarah!

    We are a small manufacturing company supplying the Detroit 3. We are calling people back to work and scheduling overtime. One department is going on 7 days a week until further notice.

    November 2, 2009 03:16 pm at 3:16 pm |
  4. Randolph Carter, I'm no expert, but....

    Don't delude yourselves, thanks to outsourcing, deregulation and "free trade" Those jobs are never coming back. We need to fundamentally change the basis of our economy or we're all screwed. We went from agriculture-based to industrial to service to a "transaction-based" economy. We need to come up with something else but quick. At least there's nothing left to steal from what's left of the middle class. Now the rich will have to start eating each other. That will be fun to watch. Really, really fun. Have a nice day!

    November 2, 2009 03:17 pm at 3:17 pm |
  5. Matt

    About $3b spent on bailouts for Citi and GM, and for what result...both file for Chapter 11. Nice job Mr President.

    Almost $300b spent through the stimulus package, and for what result...less jobs than when we started. Nice job Mr. President.

    November 2, 2009 03:18 pm at 3:18 pm |
  6. thanksbutnothanks

    Thank's 4 the warning BOZO. Like we didn't see this coming.So glad we have you to tell us what's going on.

    November 2, 2009 03:18 pm at 3:18 pm |
  7. The Constitutionalist

    Can someone please show me where it is The Executive or Legislative Branches' duty to fix or get the economy on the "right track"?

    Thanks

    November 2, 2009 03:19 pm at 3:19 pm |
  8. John

    But don't worry, he will save or create even more jobs.

    How many people has he saved or created in Afghanistan?

    November 2, 2009 03:20 pm at 3:20 pm |
  9. Brendan H., San Antonio, TX

    A blunt speaking president talking tothe people in candid terms. George Bush are you watching? Do you understand how this works – being honest with the people who trusted you with the keys to the condo?

    November 2, 2009 03:21 pm at 3:21 pm |
  10. Ralph - Joplin

    It's taken years of misuse and abuse of regulations to get our economy to the point it hit last fall. President Obama said it would be a long haul and would not improve over night. We won't have an instant recovery. I feel he's doing fine with a really bad situation I just wish there had been more oversight as to where the bailout and stimulus money went and how it was used.

    November 2, 2009 03:22 pm at 3:22 pm |
  11. T Mckinley

    "There is always a lag of several months between businesses starting to make profits again and investing again and them actually rehiring again."

    Our President understands this, Republicans like John Boehner do not.

    The jobs WILL come back. It is not a matter of "if". It is a matter of WHEN.

    And when the jobs come back. the Republicans will be in denial about it, just like they are about the fact of climate change/global warming. You'll see.

    November 2, 2009 03:26 pm at 3:26 pm |
  12. me happy- at 4:20 each day

    "the debt-driven expansion of the past"

    And what exactly is cash for clunkers and $8,000 home buyer credit?

    What an empty, blabbering hypocrite!!!

    November 2, 2009 03:27 pm at 3:27 pm |
  13. m jeff

    We will continue to see job loses as long as these greedy companies and CEOs send all the jobs to China and Mexico.

    November 2, 2009 03:28 pm at 3:28 pm |
  14. Mark

    If the administration had facts to back up those employment numbers I would believe them, but they don't.

    November 2, 2009 03:28 pm at 3:28 pm |
  15. Dean

    Obama also said, however, he's confident "that having moved the economy on the right track ... there's no reason why we're not going to be able to not only create jobs, but the kind of sustainable economic growth that everybody's
    looking for."

    How can he create jobs when there is no indusrty left in this country?
    A new job as a hotel maid does not compare with the jobs we sent to China and India.
    I guess we could do another cash for clunkers and create more automobile jobs for Japan and Korea with our taxpayer dollars.

    November 2, 2009 03:29 pm at 3:29 pm |
  16. annie s

    President Obama and his economic team have pulled this country back from the abyss. Job growth will take more time, but it will come. Thank goodness we put this man in office and not McCain!

    November 2, 2009 03:32 pm at 3:32 pm |
  17. terry,va

    Obummie is just greasing the skids because he knows the GDP number was as a result of the taxpayers paying $24,000 for each car bought during the clunker program. We are in terrible shape and any improvement won't come from the stimulus bill but will only occur when the small businessman gets some tax relief instead of tax increases under Obummie's misguided administration.

    November 2, 2009 03:32 pm at 3:32 pm |
  18. Nero speaks as usual will Rome burns

    "More" job losses, I thought the lying fraud of a coward said the other day (while reading from the binkyprompter of course), uh, uh, uh we have saved or created a million uh, uh, uh jobs.

    "Though we have no actual proof, you doubters and cynics will be targetted by my administration as NO cable type chatter or back talk is allowed".

    Never has one done so little received so much praise.

    "The problem with socialism is eventually you run out of OTHER peoples money".

    November 2, 2009 03:33 pm at 3:33 pm |
  19. gt

    more change we can believe in ,,,, no jobs ,,, if we dont get this economy going soon were never going to get this country going,,,jobs ,,, jobs,,,, jobs,,,,,no more pie in the sky ,,,

    November 2, 2009 03:33 pm at 3:33 pm |
  20. db

    Good grief! If this were GW Bush presiding over this out-and-out disaster, the media would be savaging him.

    November 2, 2009 03:33 pm at 3:33 pm |
  21. Nero speaks as usual while Rome burns

    More" job losses, I thought the lying fraud of a coward said the other day (while reading from the binkyprompter of course), uh, uh, uh we have saved or created a million uh, uh, uh jobs.

    "Though we have no actual proof, you doubters and cynics will be targetted by my administration as NO cable type chatter or back talk is allowed".

    Never has one done so little received so much praise.

    "The problem with socialism is eventually you run out of OTHER peoples money".

    November 2, 2009 03:34 pm at 3:34 pm |
  22. Willy Brown

    How's that "Change and Hope" working for you America?

    November 2, 2009 03:36 pm at 3:36 pm |
  23. Independent and Senior Lilarose in Oregon

    There are people sitting home today who expect President Obama to personally find them a job.

    They are not taking the initiative to find a job or even try to create a job for themselves.

    They can also do what I have done for decades: take undesirable jobs such as housecleaning or waitressing to survive.

    November 2, 2009 03:37 pm at 3:37 pm |
  24. Jane/Seattle

    What else is new, CNN? We people here in America already know about this for some time now. Just because some on Wall Street say that this is improving does not really mean anything is improving on Main Street! But then again rich owners need to keep laying off workers to keep improving their own profits! Few really care about the middle class and poor. just look where all the budget cuts are! Certainly, States and local governments cannot conceive of cutting overpaid "public" servant salaries! Just cut all the services to the mentally ill, homeless, children, and others. Now watch the jails fill up so the high paid contractors can keep getting paid! Then watch all the rhetoric about crime fighting so these same can hire some more cops to "fix" the messes that governments create with such short-sighted policy–All because the already monied could never receive any cuts to their pay. And again the taxpayer always gets to pay! Of course the job market sucks! Capitalists do not worry about us until they will have no one left to buy the junk they peddle made elsewhere!

    November 2, 2009 03:40 pm at 3:40 pm |
  25. Matt

    Is unemployment part of Obama's stimulus plan? I thought that spending billions of dollars that we don't have was supposed to curb the recession. Didn't Obama say that if we didn't have a stimulus, unemployment might get as high as 8%?

    This man is wreaking havoc on our country through bad policies, government spending, and a desire to limit freedoms via regulations.

    November 2, 2009 03:45 pm at 3:45 pm |
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