While many see the smaller than expected drop in employment in August as a positive sign for the U.S. economy, Republicans leaders in the House have expressed an unsurprisingly negative view of the data as they seek to highlight signs of economic weakness heading into the mid-term elections.
A report released by the Labor Department on Friday showed that employment fell by 54,000 jobs in August, compared to estimates for the loss of about 120,000 jobs. The elimination of temporary census jobs contributed to the decrease, while private sector employment rose for the eighth straight month.
Despite the smaller than expected decrease in non-farm employment, the unemployment rate still edged up to 9.6 percent in August from 9.5 percent in July.
A statement from House Minority Leader John Boehner, R-Ohio, highlighted the increase in the unemployment rate, noting that it has remained above 9 percent for 16 consecutive months despite the Obama administration's predictions that the stimulus bill would keep unemployment below 8 percent.
Boehner said, "A year that began with Americans bracing for a jobless recovery has instead turned into a full-blown search for both jobs and a recovery."
"President Obama's agenda represented 'change' once, but now it is time for him to change course, abandon his job-killing policies, and find himself a new economic team," he added.
The House Republican leader also pointed to the uncertainty surrounding the outlook for the Bush tax cuts, which are scheduled to expire at the end of the year. A number of economists have also cited uncertainty about the tax cuts as a reason that companies are avoiding hiring new employees.
While President Barack Obama has proposed extending the tax cuts for all but the wealthiest Americans, Boehner once again cited an analysis by the Joint Tax Committee that said half of small business income would still face higher taxes under the president's plan.
"We will not solve our fiscal challenges until we cut spending and have real economic growth - and we won't have real economic growth if we keep raising taxes on small businesses," Boehner said.
House Republican Whip Eric Cantor, R-Virg., also cited concerns about uncertainty in his statement regarding to the employment report.
"The policies being pursued by the White House and Democrat leaders in Washington continue to create uncertainty and fear that is inhibiting productivity, innovation and job creation," Cantor said.
He added, "Job creators, small business owners, and investors don't know which burdensome tax hike, regulation or mandate will come next, and therefore are reluctant to hire new employees, assume risk and make investments—all crucial components of any economic recovery."
Boehner noted that Republicans plan to outline their agenda later this month in what some observers see as an effort to replicate 1994's "Contract With America," which preceded Republicans taking control of both houses of Congress for the first time since 1954.
"Republicans will lay out a clear and positive governing agenda focused on cutting Washington spending and getting people working again," he said. "This agenda is being built from the ground up by listening to the American people - not political-season panicking among Washington insiders."
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