Stimulating Job Creation

SAN JOSE (KCBS/AP)  -- President Barack Obama announced Friday that he'll host a White House summit next month on combating the chronic joblessness that continues to be a drag on a struggling economy.

“We are open to any demonstrably good idea to supplement the steps we've already taken to put America back to work,” Obama said at the White House Thursday before taking off for a trip to Asia. U.S. and global business prospects will be among the key issues under discussion as the president visits Japan, China and South Korea.

  President Obama announces jobs forum

The Labor Department said new claims for unemployment insurance fall more than expected last week, evidence the job market is slowly healing as the economy recovers.

President Obama called the report "a hopeful sign." But with millions of Americans out of work, Obama said the government has "an obligation to consider every additional responsible step we can" to get people back to work.

First-time claims dropped to a seasonally adjusted 502,000 from an upwardly revised 514,000 the previous week. That's the fewest claims since the week ending Jan. 3, and below economists' estimates.

“If you’ve lost your job, the fact that the recovery is on its way doesn’t help you today,” said Rep. Zoe Lofgren.

  KCBS' Mike Colgan reports

The nationwide unemployment hit 10.2 percent last month, the highest jobless rate since 1983. Economists believe more jobs will be lost, and the unemployment rate could possibly reach 10.5 percent next year because employers remain reluctant to hire.

California’s unemployment rate now exceeds 12 percent.

A civic works project similar to the Works Progress Administration could be a boon to Silicon Valley, said the San Jose State University professor behind an initiative that helped the Gulf Coast recover economically after Hurricane Katrina.

“There are hundreds of dams that are weak,” said Prof. Scott Meyers-Lipton. “Our bridges have huge infrastructure needs.”

He believes bond measures and federal stimulus dollars could put hundreds of thousands of Californians to work, one of several ideas under discussion at a San Jose State conference on the effects of the Great Recession.

(jro)