Obama envisions stimulus package will create 4 million jobs

WASHINGTON — One day after the nation's unemployment rate jumped to a 16-year high, President-elect Barack Obama on Saturday again raised the estimate of how many jobs would result from his economic recovery plan, now saying it would create or save 3 million to 4 million, nearly 90 percent in the private sector, by the end of 2010.

Obama, in a weekly radio and Internet address, sought to inject a positive note into the economic outlook by releasing a report from his economic advisers that broadly estimated the jobs that could be created with his stimulus plan.

The report noted, however, that at least 5 million jobs, and probably many more, will have been lost during the downturn. So even if Obama's most optimistic projections bear out, unemployment in December 2010 will still be higher than it was in December 2007.Obama's address was his latest effort to sell a $775 billion proposal to Congress, where leaders have pledged to adopt a stimulus bill by mid-February, and to Americans stung by the recession.

"The jobs we create will be in businesses large and small across a wide range of industries," Obama said. "And they'll be the kind of jobs that don't just put people to work in the short term, but position our economy to lead the world in the long term."

The 14-page report, prepared by Christina D. Romer, Obama's pick to lead his Council of Economic Advisers, and Jared Bernstein, an economic adviser to Vice President-elect Joe Biden, was released to provide specific examples for the first time of the types of jobs that could be created. It was intended to counter some criticism that Obama's plan would create new bureaucracies rather than put people to work.

Even so, some conservatives argue that jobs that exist only as a result of temporary government spending should not be viewed as providing real long-term growth.

On Capitol Hill, lawmakers are engaged in fierce debate over how best to stimulate the economy and to create jobs. Some Democrats say Obama's plan would be more effective if it focused fewer dollars on tax cuts and more on government spending, especially in the energy sector.

Some top Republicans, meanwhile, are pushing for even broader tax cuts. "We want to make sure it's not just a trillion-dollar spending bill, but something that actually can reach the goal that he has suggested," said the Republican leader, Sen. Mitch McConnell of Kentucky.