Americans Still Losing Jobs Despite Stimulus

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While there are bright spots in the economy, more Americans are still losing their jobs. The unemployment rate is currently at 9.8 percent - the highest level in 26 years.

President Obama said his stimulus plan would help, but is it really making a difference?

With new construction projects underway and federal money helping the states to avoid layoffs, the White House says it is.

"Don't just take my word for it," Vice President Joe Biden said. "Analysts from Moody's to IHS Global Insight to the Economic Policy Institute and others all estimate the Recovery Act has created or saved between 500,000-750,000 jobs.

Still, not all economists are buying it.

"I find it very difficult to believe that 750,000 jobs have been created by stimulus money that's mostly gone unspent," economist Peter Morici said.

Only about 10 percent of the $787 billion of the stimulus has been spent so far.

The president signed the stimulus plan in February and since then the rate of job loss has steadily declined. Overall, however, jobs are still being cut.

More than 2.3 million Americans have lost their jobs since the stimulus went into effect -- a large amount of the 7 million jobs lost since the recession started last year.

"There will be some impact. In 2010 and 2011, we'll likely have about 2.5-3 million temporary jobs, but we've lost permanently 7 million private sector jobs," Morici said. "As a consequence this is simply not repairing what's broken in our economy."

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