The Daily Rundown | November 02, 2012
>>> wall street is embracing those new jobs numbers. 171,000 jobs added in october. well above estimates. joining me now is the chairman of the president's council of economic advisers . this is being viewed through the prism of the presidential campaign. let me ask you. what is the best news that you believe is inside this report and what is the most troubling news you see inside this report?
>> thanks, chuck. the only hat i have is the economist hat.
>> fair enough.
>> you know, i think today's report and other indicators coming in tell us that the economy is gradually healing. we add in 171,000 jobs, 184,000 in the private sector which is the most in eight months. we need to build on this progress. we need to keep at this so that everyone who wants to find a job can find one. that's why the president has proposed the middle class tax cuts for example being ek tended.
>> these numbers feel like only good numbers if you believe this is the new -- that 7.8, 7.9, 8% unemployment is the new normal. what do you do to get it from 170,000 to 400,000 for a year, a six-month period, which would actually bring down the unemployment rate to real, full employment ?
>> well, the unemployment rate is coming down and we want to build on that progress. the president proposed legislation to help families refinance their homes and we've taken administrative steps to make it easier for families to refinance and take advantage of the historically low interest rates. that is helping the housing market to stablize. we're seeing an increase in construction activity for the first time in a while. we saw in these number is a rise in construction and employment. that is an example. we'll stay at this. this is the president's objective. he has proposals to help state and local governments keep more teachers on the job and we have a lot of job losses of teachers for example. there are specific things that congress can do to help create more jobs and to continue to build on the progress we've seen over the last three and a half years.
>> one piece of troubling news in here was the issue of the hourly wage number wen down not up.
>> in recoveries, wages tend to lag behind. we want to continue building on this progress to strengthen family income and job growth . that will help raise wages and income and extending the middle class tax cuts will help middle class families maintain higher after tax income.
>> all right. alan kruger the chairman of the council of economic advisers . thanks for coming on this morning.
>> thank you.
>> we'll see you next month as well. just because the election happens doesn't mean we