Obama: Encouraging signs, but too many out of work
WASHINGTON — President Barack Obama said Friday there have been “somewhat encouraging” improvements in the country’s stricken labor markets, but the rate of joblessness is “still a sobering toll.”
The president spoke shortly after the government reported that the jobless rate rose to 8.9 percent in April, although the pace of layoffs slowed to 539,000 from well over 600,000 the previous month. He also announced a new plan to permit jobless people to return to college without losing their unemployment benefits.
Obama said that “if we want to come out of this recession better than before, we have to make sure we have a work force that’s trained better than before.”
As for the overall economy, he said: “Although we have a long way to go before we can put this recession behind us, the gears of our economic engine do seem to be slowly turning once again.”
The president asked states and colleges to help jobless people pursue education and training without losing their unemployment benefits, which typically happens when they enroll in school. They also often fail to qualify for federal grants because eligibility is based on the previous year’s income.
Under Obama’s plan, the Labor Department will encourage states to update rules during economic downturns so the unemployed can enroll in community colleges and other education or training programs without giving up their benefits. States generally require people who collect unemployment to be actively looking for work, which can make it difficult to sign up for school or job training. Going to school will satisfy the requirement that they be actively seeking new employment.
“In a 21st century economy where the most valuable skill you can sell is your knowledge,” Obama said, “education is the single best bet we can make not just for our individual success, but for the success of our nation as a whole.”
The Education Department will encourage colleges to increase financial aid packages for the unemployed. Colleges can consider unemployed workers’ situation and make them eligible for Pell Grants, which help low-income students afford college, and other aid.
An unemployed person could get a Pell Grant and use it to pay for education or job training without giving up unemployment benefits. Beginning in July, the maximum Pell Grant will increase by $500, to $5,350.
“Our unemployment insurance system should no longer be a safety net, but a steppingstone to a new future,” Obama said at the White House. “It should offer folks educational opportunities they wouldn’t otherwise have” and give them skills they need to “get ahead when the economy comes back.”
Obama has directed Labor Secretary Hilda Solis and Education Secretary Arne Duncan to implement the changes. Both departments have launched a new Web site, www.opportunity.gov, to help inform the public.
States are to send letters to every unemployment recipient describing available training opportunities and financial support.
The $787 billion economic recovery package that Obama signed into law in February gave states billions of dollars to provide extended benefits to the unemployed.
Related News
Obama sees encouraging signs towards Mideast peaceAugust 18th, 2009 WASHINGTON - US President Barack Obama said Tuesday he has seen some encouraging sign of progress in the Middle East that could help move toward achieving an Israeli-Palestinian peace deal. Obama noted Tuesday's announcement by the Israeli government that construction permits for new settlements in East Jerusalem have not been issued for months.
White House welcomes better-than-expected jobs report, says improvements still necessaryAugust 7th, 2009 White House calls job report good news for economyWASHINGTON — The Obama White House is applauding an encouraging jobs report as evidence the country has retreated from the brink of depression. Presidential spokesman Robert Gibbs told reporters Friday there remains plenty of work to do despite the latest government report showing that unemployment went down from 9.6 percent to 9.4 percent in July.
Mexican president sees signs of economic recoveryAugust 4th, 2009 MEXICO - Mexican President Felipe Calderon has said there were signs of recovery of the country's economy, and described the world economic crisis as a perfect storm, Prensa Latina reported Tuesday. Calderon made the comments Sunday and added that despite the fact that the economic crisis has led to a reduction in 10 percent of the gross domestic product, there are already some signs of recovery, such as the creation of 20,000 jobs in June.
German government sees 'encouraging' signs of progress on OpelAugust 3rd, 2009 German government hopeful on OpelBERLIN — The German government said Monday that it sees "encouraging" signs of progress in negotiations on the future of auto maker Opel as it prepares for more talks with parent General Motors Co. and the two bidders.
Obama insists economy is 'back from the brink'July 23rd, 2009 WASHINGTON - US President Barack Obama has said the country's struggling economy is on its way to recovery, but warned that the job market will be the last thing to return to normal. In an evening press conference at the White House Wednesday, Obama defended his own prescriptions for nursing the economy back to health and urged the US public to give his plans more time to work.
New manager of government's bank bailout program says he sees signs economy is on the mendJune 24th, 2009 TARP chief sees sun peeking through economic stormWASHINGTON — The new manager of the government's $700 billion bank bailout program says he sees signs the economy is on the mend even though high unemployment and falling home prices remain a threat. In prepared testimony for a congressionally appointed panel, Herbert Allison said Wednesday it is critical for the government to remain vigilant and "press ahead" with recovery efforts.
Richardson sees hopeful signs US may be able to win release of detained journalists in NKoreaJune 8th, 2009 Richardson sees talks on journalists in NKoreaWASHINGTON — Former U.N. Ambassador Bill Richardson says he sees hopeful signs the United States might be able to hold constructive talks with North Korea on gaining the release of two young journalists sentenced to prison there.
Biden: Unemployment numbers reflect tough times for many, but signs of hope as wellJune 5th, 2009 Biden: Tough times but hopeful signs in economyWASHINGTON — Vice President Joe Biden says the highest unemployment rate in more than 25 years underscores the tough times many Americans still face, but that the slowing rate of job losses reflects some "signs of hope" too. Biden said he will join President Barack Obama on Monday in seeking to ramp up the pace this summer of the massive economic stimulus effort that Congress approved earlier this year.
Geithner says US financial system in substantially better shape, economy more stableMay 31st, 2009 Geithner sees hopeful signs in US economyBEIJING — U.S. Treasury Secretary Timothy Geithner says the U.S.
White House says Obama thinks progress is being made toward GM restructuringMay 29th, 2009 White House: Obama sees progress for GMWASHINGTON — The White House says President Barack Obama thinks progress is being made toward restructuring General Motors Corp. and putting it on a path to being a viable auto company.
Fed leaves rate at record low; sees signs recession easing but warns economy will remain weakApril 29th, 2009 Fed says it sees signs recession may be easingWASHINGTON — The Federal Reserve says it sees signs the recession may be easing but warns the economy is likely to remain weak. Against that backdrop the Fed held its key lending rate at a record low of between zero and 0.25 percent.
Fed leaves rate at record low; sees signs recession easing but warns economy will remain weakApril 29th, 2009 Fed sees signs recession may easingWASHINGTON — The Federal Reserve says it sees signs the recession may be easing but warns the economy is likely to remain weak. Against that backdrop the Fed held its key lending rate at a record low of between zero and 0.25 percent.
US central bank sees 'moderation' of economic declineApril 16th, 2009 WASHINGTON - The US Federal Reserve Wednesday said a number of regions were reporting an easing of the country's economic downturn, adding to some of the small signs that the world's largest economy may be stabilizing. Five of the Federal Reserve's 12 regional banks reported a 'moderation in the pace of decline, and several saw signs that activity in some sectors was stabilizing at a low level,' according to the central bank's Beige Book, a regional report on the economy.
Obama sees US economy moving from recession to recoveryApril 14th, 2009 WASHINGTON - President Barack Obama Tuesday said efforts to take the economy from 'recession to recovery' are 'starting to work', although there was more work to be done to restore growth. The steps taken to re-capitalise banks, strengthen the housing market and rescue the auto sector were 'necessary pieces of the recovery puzzle', he said in an address at Georgetown University in Washington.
Obama sees 'glimmers of hope' for US economyApril 10th, 2009 WASHINGTON - US President Barack Obama Friday pointed to some signs of progress for the US economy, which is going through one of its longest and deepest recessions since the Great Depression. 'What you're starting to see is glimmers of hope across the economy,' Obama said after a meeting at the White House with Federal Reserve Chairman Ben Bernanke and other economic advisors.
Loading ...