US economy slowed further, more unemployment reported
The latest US unemployment figures showed the number of people laid off last month at its highest for five years.
US employers cut 63,000 positions from their payrolls in February, Labor Department figures indicated.
Bush said he hoped consumer spending would spur job creation.
The Labor Department figures show the effect the housing and lending crisis is having on US firms, and follows 22,000 job cuts in January.
Now Bush hopes his dlrs 152 billion stimulus package will give the economy momentum.
The package, recently passed by Congress, includes rebate cheques of $ 600 for individuals, $1,200 for couples, plus $300 each for dependent children for all but the very richest US citizens.
We expect they will use it to boost consumer spending and that will spur job creation as well, he said.
Bush had earlier said that it’s clear our economy has slowed.
He added: Losing a job is painful and I know Americans are concerned about our economy.
I know this is a difficult time for our economy, he said.
But we recognized the problem early and we provided the economy with a booster shot.
Analysts had been expecting the US economy to create jobs in February and the fall will heighten recession fears.
Manufacturing, construction and retail were hardest hit by job losses.
The cuts swamped job creation elsewhere, including in education and health care, leisure and hospitality and by the government.
Analysts highlighted that without a 38,000 increase in government jobs, the figures for February would have been even worse.
The US Federal Reserve announced plans to make more money available to commercial lenders at its money auctions.
The central bank hopes that if the big banks have easy access to funds, it will ease the credit crunch, which is making it more difficult for consumers and businesses to borrow money.
The Fed said it will increase the amount of loans it will auction to banks on March 10 and March 24 to dlrs 50 billion, up from the dlrs 30 billion originally planned.
The Federal Reserve has already slashed rates to 3 percent, from 4.25 percent at the beginning of the year to stabilize the world’s biggest economy. –IRNA
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