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By John Schoen, first producer

Private economy was - slowly - creating more jobs month dernier.Mais Government had been cut more quickly.

As a distributor of main budget forces State and ends to local governments, these government cuts will continue.

Monthly jobs report on Friday showed once more that the American economy is croissance.Mais, job creation is terribly slow and does not help the U.s. nearly 15 million rejected by the worst recession since the 1930s. Private companies added 64 000 jobs. Which is not yet sufficient for tracking approximately 100,000 people who usually enter the labour market each month.

While private companies were hiring agencies public tiraient.Certains elsewhere jobs were cut by the Federal State and local governments. As expected, the biggest loss - and half - came in temporary employment census. Local governments discard their payroll 76 000 jobs.Of this number, about 50,000 jobs were cut local schools.

Beware reductions in most public payroll in the months - and years - venir.Taux unemployment decreased from deep within the State of tax revenue, forcing the deep cuts in the budgets of 2011 .jusqu ' here, some 46 States have reduced spending by 125 billion - or approximately 19% of their overall budget according to the budget and policy priorities. Forward-looking, 39 States projected budget gaps 112 billion for the next year.When all States were weighed, who planned to hit $ 140 billion .jusqu ' in 2011, the figures of contagious bovine pleuropneumonia which States cut 435 billion in spending since the recession began in December 2007.

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State and local employment reductions would have been much deeper without federal aid, they have received all of the economic stimulus.But the money is going to be next year. With the mid-term elections a few weeks, the latest data jobs will increase the volume on the debate about what the Federal Government should do side to stimulate economic growth and create more jobs.

Congress had no mood to borrow more money to pay for another round of stimulus - and does not alter the likely election.It is not yet clear that another stimulus package would provide anything short term more relief for cash-strapped States.

"It was never intended to be a source of growth in the long term," says Mark Zandi, Chief Economist at Moody analysis.It was supposed to put an end to the recession and it reached its objectifs.Maintenant is responsible at the Federal Reserve."We can do of fiscal stimulus measures more."

But after cut in the short term to zero, the fed us interest rates are in uncharted territory with a limited set of untested tools.One of the few that rest is a policy of trying to push the most money in the system by buying more public and private bonds - a policy called "quantitative easing".The US Federal Reserve has already tried it once - shortly after panic 2008 all them stop but the credit markets.

This move may have prevented other damage financier.Mais system is far from clear that another round would encourage banks lend more or get companies hiring plus.Si once the labour market improve soon, watch debate renewed on the Government's expenditure - strategy or tax - to get the economy moving.

"There is relatively little monetary policy can do, said economist and former Governor of Fed Laurence Meyer."If we obtain monetary policy - budgetary stimulus measures the thing more powerful that the Government could collectively - then we are in trouble.?

When Congress returns in November, it will have to take another contentious political debate: what do major reductions of taxes adopted to set to expire at the end of the year Bush administration .Certains dire uncertainty about tax policy entrepreneurs are a big they are reluctant to hire .the reason ' administration of the Obama recently proposed tax reduced for certain forms of business investment, but Congress delayed action until after the election lekeage left entrepreneurs waiting.

"It's investment firms should be stimulated by the Government, as opposed to further alleviate or stimulus" said FedEx CEO Fred Smith. "It is investment companies must seek to create additional jobs and economic activity .c ' is just simple.

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