Obama seeks 'surgical' effort to tackle US unemployment

Dec 4, 2009, 15:39 GMT

Washington - US President Barack Obama warned that tackling unemployment will be hampered by already ballooning debt levels as he hosted a 'jobs summit' of more than 100 economists, business and labour leaders at the White House on Thursday.

Speaking one day before the government is due to release jobless figures for November, Obama promised to consider some well-tailored additional measures to help get businesses hiring again.

'I am open to every demonstrably good idea and I want to take every responsible step to accelerate job creation,' Obama said. But he added: 'Our resources are limited.'

The US unemployment rate hit 10.2 per cent in October, the highest in 26 years, and is continuing to rise despite clear signs that the United States pulled out of its deep recession some time in the early summer.

Obama said the 787-billion-dollar stimulus package approved in February had helped revive growth. But the private sector would have to be relied on to create jobs as the economy recovers.

The White House summit is in part designed to placate criticism from conservatives and some Democrats that Obama has not done enough to halt the slide. More than 7 million Americans have lost their jobs since the recession began in December 2007.

About 130 industry leaders met in separate break-out sessions during the summit to discuss infrastructure, energy, exports and taxes.

Congress is debating a package of new spending measures designed to encourage job growth. But Obama suggested he would oppose plans that substantially add to the federal budget deficit, which reached a record 1.4 trillion dollars in the fiscal year of 2009.

'We can't make any ill-considered decisions right now,' Obama said at the White House gathering. 'We're gonna have to be surgical. We're gonna have to be creative.'

Obama suggested some additional tax incentives for businesses were 'worthy of further consideration.' Initiatives that help increase US exports were another top priority.