Last Week The US Labor Department reports that only 58,000 jobs were created in May. The Unemployment rate rises to 9.1% From AP via Yahoo.com:
A bleak jobs report suggests the recovery from the Great Recession will be longer and bumpier than many economists had envisioned.
Most economists say job growth should strengthen later this year as gasoline prices drop further and the economy recovers from the effects of natural disasters in the U.S. and abroad. But the recovery is starting to weaken 17 months before the 2012 election, which could hurt President Barack Obama’s re-election prospects.
The unemployment rate in May inched up to 9.1 percent from 9 percent, the Labor Department said Friday; when Obama took office, it was 7.8 percent.
The Conference Board, a business research group, predicts the rate will be 8.5 percent at the end of next year. That would mean Obama would face a higher unemployment rate than any president running for re-election since World War II.
Meanwhile President Obama at a Toledo Chrysler plant. Politico says,
President Barack Obama on Friday told workers at a Chrysler plant in Toledo, Ohio, that the economy is on a bumpy “road to recovery,” hours after the releaseof a lackluster jobs report.
Obama’s visitto the Chrysler plant was supposed to hammer home the point that his administration’s bold rescue of the auto industry prevented the loss of millions of jobs
Obama said that because the government stepped in to stabilize the auto industry, thousands of Chrysler jobs and employees of local businesses were saved — including local restaurant Rudy’s Hot Dog, where Obama stopped for a quick meal en route to the plant.
“We had a few options: we could have followed the status quo and kept the automakers on life support … but that would have just kicked the problem down the road,” Obama said. “Or we could have done what lots of folks in Washington thought we should do, and that is nothing. That would have triggered a cascade of damage across the country.”
On Thursday night, just ahead of Obama’s visit to Ohio, the Treasury Department took final steps to divest itself of Chrysler stock, selling its remaining stake to Italian automotive and finance company Fiat. The U.S. government will recoup more than $11.2 billion in federal dollars committed as part of the Troubled Asset Relief Program’s automotive financing initiative. Treasury expects to collect an additional $560 million in proceeds from the transaction with Fiat.
Obama praised Chrysler for repaying “every dime and more of what it owes the American taxpayer” six years ahead of schedule. And with Treasury’s sale of its stock, Obama said the company soon will be 100 percent privately owned.
House Speaker John Boehner (R-OH) ask the President Where’s the jobs!!!!
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