Obama, Bush respond to bleak jobs report

President-elect Barack Obama, who is pushing an economic stimulus plan to create or save 2.5 million jobs in his first two years, weighed in this morning on the sobering new jobs report.

The 533,000 jobs cut in November were the most in 34 years and pushed the unemployment rate to 6.7 percent, a 15-year high and up from 6.5 percent in October.

"The 533,000 jobs lost last month, the worst job loss in 34 years, is more than a dramatic reflection of the growing economic crisis we face. Each of those lost jobs represents a personal crisis for a family somewhere in America. Our economy has already lost nearly 2 million jobs during this recession, which is why we need an Economic Recovery Plan that will save or create at least 2.5 million more jobs over two years while we act decisively to maintain the flows of credit on which so many American families and American businesses depend," he said in a statement.

"There are no quick or easy fixes to this crisis, which has been many years in the making, and it's likely to get worse before it gets better. But now is the time to respond with urgent resolve to put people back to work and get our economy moving again. At the same time, this painful crisis also provides us with an opportunity to transform our economy to improve the lives of ordinary people by rebuilding roads and modernizing schools for our children, investing in clean energy solutions to break our dependence on imported oil, and making an early down payment on the long-term reforms that will grow and strengthen our economy for all Americans for years to come."

President Bush tried to reassure Americans and the financial markets, coming to a microphone outside the White House to say that he is concerned about workers losing their jobs and is focusing on the root causes of the recession.

He said moves to unfreeze the credit market are starting to work. He also said he is worried about ailing automakers, but doesn't want more taxpayer money given to them without real reform and without guarantees that the loans will be repaid.

"My administration is committed to making sure the economy succeeds," he said.

John Sweeney, president of the AFL-CIO, the nation's largest labor federation, issued a statement:

"Today's jobs numbers are an economic code red for our country's working families, and layoff announcements this week signal that things are only getting worse. Our nation shed 533,000 jobs in November, the greatest monthly drop since 1974. Since the recession began last December, the economy has lost 1.9 million jobs. The unemployment rate has spiked to 6.7 percent. This is no time for the complacency we're seeing from politicians who seem to be trying to out-Hoover Hoover. While Barack Obama's new economic team looks forward to tacking this crisis next month, we need action on a major jobs-producing economic stimulus now.

"As families continue to lose jobs and homes, we need urgent action from Congress on a bridge loan to our struggling auto industry to prevent a devastating acceleration in job loss and economic catastrophe. And Congress must pass a $450 billion economic recovery package that provides fiscal support to struggling state and local governments to maintain vital services, extends unemployment benefits and invests in infrastructure development to create good, green jobs.

"But immediate solutions are only one piece of the puzzle. President-elect Obama has pledged to enact broad-based economic reform to save the middle class. He will need to act swiftly to put an end to the chorus of deregulation that let Wall Street spiral out of control. Our nation's banking and financial sectors urgently require increased government oversight to safeguard working people's hard earned money. From health care to trade policy, we need leaders who have the courage to put working people's interests ahead of the corporate bottom line. No economic reform will be complete without restoring workers' freedom to form and join unions to bargain for better wages and benefits. Without it, working people will lose their toehold on the middle class."