The Obama administration's fiscal stimulus plan will meet previous
estimates to save 3.5 million U.S. jobs by the end of 2010, but the
unemployment rate at that time may be higher due to further
deterioration in the economy, a senior administration official said on
The official said the
administration was monitoring closely the results of the $787 billion
spending and tax-cut package to determine whether additional actions
are needed as mid-term economic forecasts are prepared by the White
At this point we think that we've taken the right steps
and (the plan) is going to do what it needs to do for the American
people, but the president always said we'll do what it takes. So we
will very much be watching, said the official, who was not authorized
to speak publicly on the stimulus program.
The White House
Council of Economic Advisers on Monday released a report showing the
plan would save or create 1.5 million jobs by the end of 2009 and 3.5
million by the end of 2010.
While that is unchanged from a report made in January, the official said conditions have deteriorated since then.
2010 quarter four, wherever we were going to be, we felt that we were
going to be 3.5 million jobs bigger than that because of the stimulus
package, the official said.
Because of the lower baseline, the
unemployment rate at the end of 2010 will be higher than previously
anticipated, the official added.
On Friday, the Labor Department
said U.S. employers shed 539,000 jobs in April, pushing up the
unemployment rate to 8.9 percent, the highest since September 1983.