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Broken into pieces, President Obama's jobs plan still has trouble passing

U.S. President Barack Obama waves after speaking at Cree, Inc. after meeting with the Council on Jobs and Competitiveness Council at the corporate and manufacturing headquarters of Cree on June 13, 2011 in Durham, N.C.

Steve Chiotakis: There was another attempt at getting a jobs bill through the U.S. Senate, and another filibuster sent the bill to defeat. After failing to get President Obama's near half trillion dollar American jobs Act past a GOP filibuster, Senate Democrats tried to push one plank of it through that would've sent money to states for teaching, firefighting and first responder jobs.

But Marketplace's Mitchell Hartman reports now, the outcome was the same.


Mitchell Hartman: Following this defeat, Democrats plan to bring forward other items in the President's jobs agenda -- like infrastructure spending and help for the unemployed.

Helping the states prevent layoffs is popular with voters, especially public-sector union voters. But it doesn't play well with Republicans. They argue that more deficit spending and higher taxes on the wealthy to save public sector jobs in the short-term could actually harm private-sector job creation in the long-term.

Outplacement expert John Challenger says all those laid-off teachers and government administrators may prove a drag on the job market for a while.

John Challenger: Employers in the private sector worry that people coming out of the public sector don't have the same kind of urgency to get the job done; that they've been in more comfortable, safer jobs for a longer period of time.

Since March 2010, the private sector's added nearly 2.5 million jobs. Over the same period, government has shed more than half a million jobs.

I'm Mitchell Hartman for Marketplace.

About the author

Mitchell Hartman is the senior reporter for Marketplace’s Entrepreneurship Desk and also covers employment.

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