11/6/2009 3:18 PM ET
(RTTNews) -
Facing the nation's highest unemployment rate in decades, President Barack Obama Friday sought to reassure Americans that his administration was doing everything it could to fix the economy.
Obama pointed specifically to a bill that he had just signed to extend unemployment benefits for an additional 14 to 20 weeks, expand and continue a tax credit for first-time homebuyers and allow businesses to write off additional losses.
The measure passed the Senate Wednesday and was adopted by the House Thursday night.
"The need for such a measure was made clear by the jobs report that we received this morning," Obama said. "Although we lost fewer jobs than we did last month, our unemployment rate climbed to over 10 percent - a sobering number that underscores the economic challenges that lie ahead."
Earlier Friday morning, the Labor Department released the October jobs report, showing that the U.S. lost 190,000 jobs for the month. It also showed that the unemployment rate rose to 10.2%, the highest level in over 26 years.
"History tells us that job growth always lags behind economic growth, which is why we have to continue to pursue measures that will create new jobs," Obama said.
He added, "I can promise you that I won't let up until the Americans who want to find work can find work and until all Americans can earn enough to raise their families and keep their businesses open."
The extension of unemployment benefits will provide direct help for more than 1 million Americans who are still searching for work, but it also has a broader benefit, Obama said.
"It won't just put money into the people's pockets who are receiving the benefits," he said. "Economists tell us that when these benefits are spent on food or clothing or rent, it actually strengthens our economy and creates new jobs."
He added, "This bill will also cut taxes for struggling businesses, with even larger cuts for small businesses, which means that thousands of entrepreneurs will get the cash they need to avoid laying off workers or closing their doors."
Obama also noted that the housing market was one of the most important areas of growth in the economy.
The bill "will extend the tax credit for all home buyers through April of next year while strengthening it with stronger anti-fraud measures," he said. "The rebound in the housing market was one of the big factors that contributed to the growth of the economy last quarter, and brought hundreds of thousands of families into the housing market."
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