Businesses with federal stimulus contracts have created few jobs in states with the worst unemployment rates, according to data released Thursday by the federal government.
By MICHAEL COOPER and RON NIXON
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Jobs From Federal Stimulus Contracts
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Times Topics: Economic Stimulus
The new jobs reported Thursday come from a small slice of a sliver of the $787 billion stimulus program: the roughly $16 billion worth of stimulus contracts that were awarded directly by federal agencies, of which about $2.2 billion has been spent so far. But the preliminary data represented the first time that the federal government has reported actual job figures, and not just job estimates, and they provided the most complete snapshot yet of how one component of the sprawling program — direct federal contracts — was shaping up.
One thing was clear: while the federal contracts have created or saved 30,383 jobs, they were not directed to states with the highest jobless rates. Businesses in Michigan, whose 15.2 percent unemployment rate in August was the highest in the nation, reported creating or saving about 400 jobs. Businesses in Nevada, which had the next highest unemployment rate, reported 159. And businesses in Rhode Island, which had the third-highest unemployment rate, 12.8 percent, reported the fewest jobs: just six.
More jobs, by contrast, were reported in some of the states with lowest unemployment rates. Businesses in North Dakota, whose 4.3 percent unemployment rate was the lowest in the nation, reported creating or saving 219. The most jobs were reported in Colorado, whose 7.3 percent unemployment rate was below the national average that reached 9.8 percent last month, and where businesses reported creating or saving 4,695 jobs.
In many cases federal agencies could not steer their contracts to high-unemployment areas: the stimulus act gave the agencies money for existing federal programs and priorities. So the roughly $6 billion that the Department of Energy was given to clean up nuclear sites, for example, which was the biggest source of federal contracts, must be spent where the nuclear waste is.
The data yielded some interesting political tidbits. While no Republicans in the House voted for the stimulus bill, the five Congressional districts that appeared to be getting the most money in federal stimulus contracts so far are all represented by Republicans. And though Democrats control the House, it appeared that more money was being spent for work in districts held by Republicans.
The new jobs figures by themselves did not shed much light on the question of how well the stimulus program was accomplishing President Obama’s goal of saving or creating 3.5 million jobs over two years. The administration estimates that the program has already created or saved one million jobs — a figure that includes jobs from money that went through states, which will not be reported until the end of the month; layoffs that were averted when the stimulus gave fiscal relief to states; and jobs that were created or saved when people spent their tax cuts or other aid. But with the unemployment rate at 9.8 percent, Republicans are asserting that the program is failing to create enough jobs.
The data posted Thursday on the stimulus Web site, recovery.gov, was preliminary; recipients can still change errors, and government officials said that based on past experience there were likely to be many. But the Web site is part of a pledge by the Obama administration and Congress to make the stimulus spending transparent. It has a map allowing people to see how many contracts were awarded in their states, their Congressional districts, or even in their ZIP codes, and how many jobs the recipients of those contracts are claiming.
White House officials were sensitive to the gulf between the 30,383 jobs in the report and the goal of creating or saving 3.5 million jobs. Jared Bernstein, the chief economist for Vice President Joseph R. Biden Jr., who oversees the stimulus, issued a statement saying that the jobs figure exceeded their expectations but cautioning that “it is too soon to draw any global conclusions from this partial and preliminary data.”
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