Today’s employment report shows that private sector payrolls increased by 57,000 in June and the unemployment rate ticked up to 9.2 percent. While the private sector has added 2.2 million jobs over the past 16 months, this month’s report reflects the recent slowdown of economic growth due to headwinds faced in the first half of this year.

The unemployment rate remains unacceptably high and faster growth is needed to replace the jobs lost in the downturn. Today’s report underscores the need for bipartisan action to help the private sector and the economy grow – such as measures to extend the payroll tax cut, pass the pending free trade agreements, and create an infrastructure bank to help put Americans back to work.  It also underscores the need for a balanced approach to deficit reduction that instills confidence and allows us to live within our means without shortchanging future growth.

Overall payroll employment rose by just 18,000 in June.  Sectors with employment increases included leisure and hospitality (+34,000), health care (+13,500), and manufacturing (+6,000). Sectors with employment declines included government (-39,000), financial activities (-15,000), and construction (-9,000).  Manufacturing has added 251,000 jobs since the beginning of 2010, the best period of manufacturing job growth in over a decade. Meanwhile, local governments lost 18,000 jobs in June and have shed 355,000 jobs since the start of 2010.

The monthly employment and unemployment numbers are volatile and employment estimates are subject to substantial revision.  Therefore, as the Administration always stresses, it is important not to read too much into any one monthly report.

Austan Goolsbee is Chairman of the Council of Economic Advisers

President Barack Obama makes a statement to the media in the James S. Brady Briefing Room following the meeting with the Congressional Leadership to discuss the ongoing efforts to find a balanced approach to deficit reduction, July 7, 2011. (Official White House Photo by Pete Souza)

Today, President Obama held a meeting with Congressional leaders to discuss the ongoing efforts to find a balanced approach to reduce our deficit. Following the meeting, the President stopped by the press briefing to give a statement on the negotiations:

I just completed a meeting with all the congressional leaders from both chambers, from both parties, and I have to say that I thought it was a very constructive meeting.  People were frank.  We discussed the various options available to us.  Everybody reconfirmed the importance of completing our work and raising the debt limit ceiling so that the full faith and credit of the United States of America is not impaired.

What we decided was that staffs, as well as leadership, will be working during the weekend, and that I will reconvene congressional leaders here on Sunday with the expectation that, at that point, the parties will at least know where each other’s bottom lines are and will hopefully be in a position to then start engaging in the hard bargaining that’s necessary to get a deal done.

There’s a new study out today that confirms just how important health insurance and the Medicaid program really are. The study is already making waves with Ezra Klein calling it, “the most important health-care policy experiment since the 1970s.” Here’s how it worked:

In 2008, Oregon expanded Medicaid eligibility to a group of low-income, uninsured adults. But at that time, more people were eligible for Oregon’s Medicaid program than the state could afford, so they set up a lottery to determine who would receive coverage.

The Oregon Health Insurance Experiment looked at what happened to the people who won the lottery and received coverage through Medicaid compared to those who did not. And the results are even more positive than we anticipated. The study found that:

• Providing these Americans with health insurance led to a significant increase in the use of critical preventive services. For example, women with coverage were 60% more likely to get mammograms and 20% more likely to have their cholesterol monitored.
• Those with insurance were 70% more likely to regularly visit their primary care doctor.
• People who gained coverage saw sizable improvements in their health and well-being.

Those with insurance saw greater financial security and savings for providers. According to the report, “Insurance decreased the probability of having an unpaid medical bill sent to a collection agency by 25% -- which also benefits health care providers since the vast majority of such debts are never paid.”
 

In addition to the positive effects of insurance for those covered, the study also found good news for States that expand Medicaid coverage.  Researchers found that:

• The costs of a Medicaid expansion, in terms of increased health expenditures, are considerably smaller than prior research has suggested.
• Improving access to public insurance for uninsured people did not lead to subsequent reductions in private insurance coverage.   

Today, our country is having an important debate about the future of Medicaid. President Obama has proposed a framework that will strengthen Medicaid, make it more efficient and continue to provide services and support to the millions of children, families, seniors and pregnant women who depend on Medicaid every day.

In contrast, Republicans have offered a plan to turn Medicaid into a dangerously underfunded block grant. Under their plan, states would get one-third less for Medicaid by 2021. 15 million people could be left without coverage.

We know – and today’s study confirms – that Medicaid is making a difference in the lives of millions of Americans and the President will continue to fight to strengthen Medicaid.

Sherry Glied is HHS Assistant Secretary for Planning and Evaluation

With more than one out of every six dollars of Federal government spending going to contractors, increasing accountability and saving money in contracting is critical to creating a Federal government that is efficient and effective. Last month, President Obama and Vice President Biden launched the Campaign to Cut Waste and issued a new Executive Order on Delivering an Efficient, Effective, and Accountable Government to hunt down misspent tax dollars across the Administration.

As part of the Campaign to Cut Waste, today, we are announcing that all agencies must cut spending for management support service contracts by 15 percent.  Instead of paying $40 billion for these services, as agencies did in FY 2010, they will reduce spending to $34 billion a year by the end of FY 2012 – a reduction of $6 billion.  

The President answered a series of questions on jobs and the economy at the first-ever Twitter Town Hall at the White House. Check out the full video of the event below, or just the jump links to skip to the questions.

• @whitehouse: in order to reduce the deficit, what costs would you cut and what investments would you keep – bo
• @Conblog: @DrewHampshire: What mistakes have you made in handling this recession and what would you do differently? #askObama
• @dmscott: #AskObamaTech & knowledge industries are thriving, yet jobs discussion always centers on manufacturing. Why not be realistic about jobs?
• @dwhite105: Higher ed. is necessary for a stronger economy, but for some middle class Americans it's becoming too expensive. What can be done? #askobama
• @_RenegadeNerd_: #AskObama Mr. President, will you issue an executive order to raise the debt ceiling pursuant to section 4 of the 14th amendment?
• @ensina: Immigrant entrepreneurs can build companies and create jobs for US workers. Will you support a startup visa program? #askobama
• @awg9988: @KimQuillenTPWill you focus on promoting alternative energy industries in oil states like Louisiana and Texas? #townhall
• @pmglynn: Mr. President, In several states we have seen people lose their collective bargaining rights. Do you have a plan to rectify this? #AskObama
• @robinmarty: @Kara_McGuireHow will admin work to help underwater homeowners who aren't behind in payments but are trapped in homes they can't sell?
• @johnboehner: After embarking on a record spending binge that’s left us deeper in debt, where are the jobs? #AskObama
• @nealhannon: Small biz create jobs. What incentives are you willing to support to improve small biz growth? #AskObama
• @craigoc34: @whitehouse@townhall My question is can you give companies a tax break if they hire a Honorable discharged Veteran?
• @NickKristof: #AskObamaWas it a mistake to fail to get Republicans to commit to raise the debt ceiling, at the same time tax cuts were extended?
• @almorrison88: #askobamaWhat changes to the tax system do you think are necessary to help solve the deficit problem and for the system to be fair?
• @Shnaps: Is free-market an option? RT @whitehouse: Obama on homeowners underwater: Have made some progress, but+ needed, looking at options #askObama
• @pedsnursemarcia: @AssignmentDesk1#AskObamaPublic Edu here in CA falling apart. Not grad enough skilled workers or smart citizens. Privitization looming?
• @flynnbw: @WhiteHouseWe definitely need to get more vets into jobs. But when are we going to support the troops by cutting oil dependence? #AskObama
• @ModeledBehavior: So will you raise taxes on the middle class at least to W Bush levels @askObama@townhall
• @Ronargus: @whitehouse Now that the space shuttle is gone where does America stand in space exploration?
• @BrianJMcKeon: @whitehouse Cut defense contracting. End war on drugs. Eliminate agribiz and big oil subsidies. Invest in public campaign financing.
• @ElizaCait: @whitehouse Stop giving money to countries that waste it (Pakistan) Keep military (share the wealth between branches), don't cut education.
• @DannyJedski: @whitehouse we need to raise taxes - period.
• @tammyvent: @whitehouse cut military spending and oil subsidies and keep education investments. #askobama
• @MostlyModerate: @whitehouse Cut subsidies to industries which are no longer in crisis or are unsuccessful: Cotton Oil Corn subsidies for ethanol
• @gsxr7501: @whitehouse I'd cut costs by cutting some welfare programs! People will never try harder when they are handed everything!

I commend the decision of our Commander-in-Chief, President Obama, reversing the long-standing policy of not sending condolence letters to the families of service members who commit suicide while deployed to a combat zone.  The greatest regret of my military career was as Commanding General of the 1st Cavalry Division in Iraq in 2004-05.  I lost 169 Soldiers during that year-long deployment.  However, the monument we erected at Fort Hood, Texas in memoriam lists 168 names.  I approved the request of others not to include the name of the one Soldier who committed suicide.  I deeply regret my decision.

The brave individuals who wear the cloth of this great Nation in combat deserve our deepest gratitude.  It is remarkable all they have accomplished.  I am incredibly proud of them and of their families.  That said, they are tired.  The persistent high operational tempo of this war, the terrible things some have seen or experienced in combat, have undoubtedly taken a toll on them.  Many are struggling with the ‘invisible wounds’ of this war, including traumatic brain injury, post-traumatic stress, depression and anxiety.  Any attempt to characterize these individuals as somehow weaker than others is simply misguided. 

Today, President Obama delivered remarks to discuss the status of efforts to find a balanced approach to deficit reduction.  The President stated that progress has been made, and though we still need to work through some real differences, that even greater progress is within reach.  

However, he also stressed that we can’t afford to do the bare minimum to avoid defaulting on our debt in the short-term, and we must seize the opportunity to make substantial progress reducing the deficit:

Now, I’ve heard reports that there may be some in Congress who want to do just enough to make sure that America avoids defaulting on our debt in the short term, but then wants to kick the can down the road when it comes to solving the larger problem of our deficit.  I don’t share that view.  I don’t think the American people sent us here to avoid tough problems.  That’s, in fact, what drives them nuts about Washington, when both parties simply take the path of least resistance.  And I don’t want to do that here.

I believe that right now we’ve got a unique opportunity to do something big -- to tackle our deficit in  a way that forces our government to live within its means, that puts our economy on a stronger footing for the future, and still allows us to invest in that future.

Most of us already agree that to truly solve our deficit problem, we need to find trillions in savings over the next decade, and significantly more in the decades that follow.  That’s what the bipartisan fiscal commission said, that’s the amount that I put forward in the framework I announced a few months ago, and that’s around the same amount that Republicans have put forward in their own plans.  And that’s the kind of substantial progress that we should be aiming for here.

A young girl salutes President Barack Obama as he shakes hands along a ropeline with members of the military and their families at the White House, July 4, 2011. (Official White House Photo by Pete Souza)

Watch a video from the Independence Day celebration at the White House. The President and First Lady joined more than 1,200 military heroes and their families for a barbeque, a special USO show featuring Train and Amos Lee, and a viewing of the fireworks over the National Mall.

Watch the celebration, here. 

Tonight, the First Family is celebrating the Fourth of July by hosting more than 1,200 military heroes and their families for a barbeque, a USO show featuring Train and Amos Lee, and an extraordinary view of national capital fireworks from the South Lawn. You can check it all out on WhiteHouse.gov/Live, or watch from anywhere with our mobile apps.

Here's the full live stream schedule:

• 6:30 PM EDT: President Obama delivers remarks from the South Lawn
• 8:15 PM EDT: USO show featuring Grammy Award-winning band Train and celebrated singer/songwriter Amos Lee
• 9:10 PM EDT: National capital fireworks display

Check out some of our favorite photos and video from last year, plus a special message from First Lady Michelle Obama encouraging all Americans to give back to our military families.