The Obama administration predicted today there will be light at the end of the tunnel this year on jobs creation.
There will be an average net increase of 95,000 jobs per month for the rest of the year, the savings rate will remain high and credit will be difficult to obtain, the administration stated in its Economic Report of the President.
Job losses have been plaguing the economy throughout the recession. In 2009, there were 691,000 jobs lost in the first quarter and 69,000 in the final quarter. Last week, the Labor Department reported that the economy lost 20,000 jobs in January and unemployment was 9.7%, down from 10% in December.
The administration used the report to make the case for key items in Obama's domestic policy agenda, including overhauling the health care system and revamping the way financial services companies are regulated.
In his letter accompanying the report, President Obama noted that "while the financial system is far stronger today than it was a year ago, it is still operating under the same rules that led to its near collapse."
He noted that the rules changes he has proposed "seek not to undermine our markets but to make them stronger."