Obama Aims To Formulate Economic Stimulus Plan, Create 2.5 Million Jobs In Two Years

November 22, 2008 9:09 a.m. EST

Washington, D.C. (AHN) - President-elect Barack Obama said on Saturday that he is chalking out plans, including plans to stimulate economy and create as many as 2.5 million jobs.

Obama in his weekly radio address said he is aiming to create millions of jobs over the next two years to strengthen the economy by rebuilding crumbling roads and bridges, modernizing schools and securing a clean energy future.

The message followed data released by the Labor Department on Thursday showing that the U.S. weekly initial jobless claims for unemployment compensation increased by 27,000 to 542,000, reaching a 16-year high, during the week ending Nov. 15.

The report also showed that the jobless rate among workers with unemployment insurance increased.

So far this year, the unemployment rate has climbed up to 6.5 percent, pushing up the total number of jobs cut by the firms in different sectors to 1.2 million jobs during the first 10 months of 2008.

In today's address, Obama said, "Financial markets faced more turmoil. New home purchases in October were the lowest in half a century. 540,000 more jobless claims were filed last week, the highest in eighteen years. And we now risk falling into a deflationary spiral that could increase our massive debt even further."

He added, "I have already directed my economic team to come up with an Economic Recovery Plan that will mean 2.5 million more jobs by January of 2011 - a plan big enough to meet the challenges we face that I intend to sign soon after taking office [on January 20]."

On Friday, President George W. Bush signed a long-overdue extension extension of jobless benefits into law on Friday morning amid tight jobs market, according to the White House.

The authorization by the President follows an approval of the House bill by the Senate. The latest law provides benefits to be extended by seven weeks and by 13 weeks in states with unemployment rates higher than 6 percent.

However, Obama said the authorities must do more "to put people back to work and get our economy moving again." He is expected to work out the details on the plan in the next few weeks.

According to the Commerce Department's latest report, the world's largest economy is in a recession as the gross domestic product contracted in the third quarter to a seasonally adjusted 0.3 percent at annual rate.

The market economists are expecting the recession to deepen as the unemployment rate jumps over 7.5 percent by the end of next year and the GDP is expected to shrink by as much as 5 percent in 2009.

Obama said: "The survival of the American Dream for over two centuries is not only a testament to its enduring power, but to the great effort, sacrifice, and courage of the American people. It has thrived because in our darkest hours, we have risen above the smallness of our divisions to forge a path towards a new and brighter day."