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

Obama warns of more job losses despite economic uptick

[cnn-photo-caption image= caption="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 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. Robin

    Isn't this why he passed the stimulus? To keep unemployment at bay?

    Look, we all know he took over the Office under less then ideal circumstances, but when does Obama start being held accountable for what HE is doing?

    November 2, 2009 03:48 pm at 3:48 pm |
  2. The Lonely Libertarian of Liverpool NY

    "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. "

    What does he think the current recovery is based on? 12.1 trillion dollars of federal debt is the only thing we are living on now, what will happen after 2010 when all this money is gone? Are you just going the have the corrupt and bankrupt Federal Reserve Bank print more money out of thin air?
    Sooner the better is to reduce this national debt. The US dollar is very close to collapse and this can not be blamed on Pres. Bush this is all on this years team.

    November 2, 2009 03:49 pm at 3:49 pm |
  3. wellthereitis

    More job losses and we can't continue on debt-driven expansion? What does he think the increasing deficit and ballooning stimulus plans are? By the way folks, census workers are temp jobs, not real job creation. Real job creation involves employment opportunitiies for the long term, not day laborers.

    November 2, 2009 03:51 pm at 3:51 pm |
  4. Proud Member..Party of No

    And what he should have said, of course, is "There will be more job losses because my stupid socialist policies don't work just as the conservatives said they wouldn't and, by the way, you'll be seeing the negative impact of my stupid policies for years to come."

    November 2, 2009 03:53 pm at 3:53 pm |
  5. Grrr-awful-o

    But the ecomonic stimulus is working, right? Beyond our wildest dreams, right?

    As long as it's failing it's George Bush's fault. When it turns around (and all recessions and depressions eventually do turn around all by themselves) that will be self-credited from and to Barack Obama. Right? [joke]

    November 2, 2009 03:53 pm at 3:53 pm |
  6. whaley41

    It's called CYA !!!!

    November 2, 2009 03:54 pm at 3:54 pm |
  7. blutarski

    What do you mean Barry O? I thought spending those billions was supposed to keep unemployment at 8%, you promised. Besides, isn't the recession over? What's with all the negative rap. You mean we can't spend our way out of a recession?

    November 2, 2009 03:54 pm at 3:54 pm |
  8. Jeff

    How about this for a new model for economic growth: An economy that produces tangible goods (and exportable services). Whether it's energy (I'd like to see wind and solar...but I'd rather use oil from under our ground than under someone else's ground) or machinery, or even toys for that matter, we have to produce what other nations will buy. The problem with our economy is rooted in our trade deficit, which is likely related to our federal deficit. We would have more taxable income and fewer entitlement programs.

    So the issue becomes how to attract industry, where we have very high labor costs, due to high living costs, due to high standards of living. Lower taxes for businesses (if possible, targeted at those which employ people to actually produce things) would help to offset the higher labor costs. Another would be less legislatively and more individual – buy products based on their american labor content. That would help to slow the exodus of jobs to cheaper places.

    November 2, 2009 03:56 pm at 3:56 pm |
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