Statement by AFL-CIO President John Sweeney on the January Jobs Report

February 01, 2008 -- "In another jolt of bad news for working people, today’s jobs report shows the slowing economy stalled in January. The economy shed jobs for the first time in four years and unemployment claims spiked last week to the highest level since the aftermath of Hurricane Katrina, adding to growing concerns that working families are in for a serious recession.

The weakening job market is a kick in the stomach to working families already suffering a generation-long stagnation of wages and rising insecurity. With energy costs rising, health care expenses spiraling out of control and the housing crisis in full swing, Congress and the President must take swift action to provide relief to those who need it most.

The Federal Reserve has moved aggressively to lower interest rates, but this will not be enough to prevent a recession.

We call on the Senate to pass an immediate economic stimulus package that includes an extension of unemployment benefits and food stamps to get money in the pockets of America’s unemployed workers right away. Congress should also provide fiscal relief to cash-strapped states so vital services to the most vulnerable aren’t cut, especially Medicaid. To put Americans back to work quickly, Congress should green-light ready-to-go construction projects that would make desperately needed repairs to U.S. schools, bridges that have been declared unsafe and sewage treatment infrastructure.

Fears of recession only aggravate the economic anxiety felt by millions of America’s working families. We must move quickly to lessen the impact of the current economic downturn and freeze interest rates on sub-prime mortgages to keep millions of families from losing their homes. But short-term action is not enough. We must also begin to reform the unbalanced economic policies behind the coming recession and that have created wage stagnation and economic insecurity."

Source: AFL-CIO

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