The government's Recovery Act is responsible for between 2.2 and 2.8 million jobs through the first quarter of 2010, according to the latest stimulus report from President Obama's chief economic adviser. The report, from the Council of Economic Advisers, says the economic stimulus is on track to create or save 3.5 million jobs by the end of the year. "From tax cuts to construction projects, the Recovery Act is firing on all cylinders when it comes to creating jobs and putting Americans back to work." Vice President Joe Biden said in a statement.
Job growth is better than job losses and this does seem to be sufficient to lower the unemployment rate by a modest amount. But let’s assume that simply keeping pace with a rising population and labor force means we have to create 100,000 new jobs per month. With the civilian non-institutional population being near 237 million, the projected increase in the employment to population ratio for 2010 seems to be a mere 1 percent. This ratio was 58.2% as of December 2009 and has risen to 58.6% as of March 2010. If it rises to 59.2% by the end of the year, we will still have a very weak labor market.