News From Congresswoman
Nydia M. Velázquez
Representing New York's 12th Congressional District - Brooklyn, Manhattan, Queens
Ranking Democratic Member, House Small Business Committee

For Immediate Release
October 8, 2004

CONTACT: Kate Davis, Allyson Ivins, (202) 225-4038

Economy Continues the Struggle to Create Jobs
New jobs report paints grim outlook for economy and small businesses

WASHINGTON - Congresswoman Nydia M. Velázquez (D - N.Y.), Ranking Member of the House Small Business Committee, today called the newly released Bureau of Labor Statistics (BLS) report, "a clear indicator that the economy is stuck in a slump, and small businesses aren't getting the assistance they need to create the jobs our economy requires right now, especially for the 8 million Americans out of a job."

Today's BLS jobs report stated the economy added only 96,000 jobs last month - well below economists' expectations of 150,000 new jobs, and below last month's level which was revised down from 144,000 to 128,000 jobs. In addition, the report confirmed that the Bush administration is still on track to have the worst job creation record since Herbert Hoover, as the U.S. economy fails to generate new jobs at a pace not commensurate with an economic expansion.

"For the past four years the situation has failed to improve - an economy struggling to stay afloat and record job loss numbers," Congresswoman Velázquez said. "What baffles me is that it is very obvious what can turn this economy around - small business. They create three out of every four jobs, and represent over 97 percent of employers, yet these job numbers demonstrate that the current environment is simply not conducive for job growth. The Bush administration and Congressional Republicans needs to acknowledge their failed policies, and that small businesses continue to face skyrocketing healthcare, energy and regulatory costs - which are preventing them from pulling us out of this economic slump."

These job numbers were reinforced by this week's major U.S. corporations' announcement of mass layoffs, suggesting that economic activity is slowing and signaling tough times ahead for American workers. Corporate icons, such as AT&T, Bank of America, and Unisys, as well as numerous regional manufacturers, released details for employee reductions that will eliminate over 15,000 jobs. Ironically, these mass layoffs were announced on the eve of today's BLS report, and signal continued trouble in the manufacturing sector. Regional manufacturers, including Hedstrom Corporation and Temple-Inland Incorporated, also cut jobs. The BLS report showed that the manufacturing sector lost 18,000 jobs - the first decline in two months.

"My question remains the same - how can this administration continue to say that the economy is improving, when the economy is not creating the jobs it needs and so many American employers are laying off U.S. workers?" Congresswoman Velázquez said. "It is apparent that the inaction of the Bush administration to address the issues that have been plaguing our nation's economy for the past several years has led us to these grim job numbers. The rhetoric needs to stop, and the White House needs to start taking action to implement policies that will help small businesses get this economy back on track."

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