White House looks to move into plus column on jobs

In a hopeful election-year forecast, the White House said yesterday its jobs record should break into the plus column with the creation of about 2.6 million new positions this year.

If realised, the jobs turnaround could help President George W. Bush's re-election prospects. Mr Bush, who has seen 2.2 million jobs disappear since he took office, has faced withering fire from Democrats over jobs.

"There's every indication that the economy will do well in 2004 and that jobs will be created," said Gregory Mankiw, the chairman of the president's Council of Economic Advisers.

In the annual Economic Report of the President, the White House said the number of workers on US non-farm payrolls was likely to rise to an average of 132.7 million this year from a 2003 average it thought would come in at 130.1 million.

According to the latest jobs figures released by the Labour Department on Friday, which incorporated data revisions, payroll employment averaged just 129.9 million last year.

Last year, the Bush administration was looking for the creation of about 1.7 million jobs. But 53,000 jobs were lost.

"As 2004 begins, America's economy is strong and getting stronger," Mr Bush said in a statement. "We are moving in the right direction, but have more to do. I will not be satisfied until every American who wants a job can find one."

The administration's forecast would mean about 200,000 new jobs a month, a sharp step up from the meager payroll gains of recent months but an expectation not out of line with the view of many private economists. In January, the strongest month of jobs growth in two years, payrolls rose only 112,000.

John Kerry, the front-runner in the race for the Democratic presidential nomination, expressed scepticism the White House jobs forecast would be met.