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Treasury Secretary Snow sees job growth

U.S. Treasury Secretary John Snow said on Sunday that despite disappointing job growth last month the economy is on an upswing that will lead to increased employment.
/ Source: Reuters

U.S. Treasury Secretary John Snow said on Sunday that despite disappointing job growth last month the economy is on an upswing that will lead to increased employment.

"I'm confident that this recovery will translate into job creation," Snow said as he also reaffirmed the administration's commitment to cut in half in five years the record federal deficit, which has drawn fire from a number of economic groups.

Snow said the federal budget that President Bush will soon propose will reflect the administration's vow to reduce the deficit, largely by slowing the growth in spending.

"This is an administration committed to fiscal responsibility," Snow told ABC's "This Week."

"This budget that comes forward will be one that advances the priorities of the country but within a fiscally responsible framework," Snow said.

The treasury secretary said, "We are in a good recovery" that will lead to job growth as well as added revenue, which will also help shrink the deficit.

A series of administration tax cuts, which it is now pressing Congress to make permanent, helped fuel a record $374 billion budget gap last year, or about 3.5 percent of U.S. gross domestic product, the highest proportion since 1993. The White House expects that to hit about 4.5 percent this year.

Three groups -- the business-backed Committee for Economic Development, bipartisan Concord Coalition and liberal Center on Budget and Policy Priorities -- have jointly warned of cumulative deficits totaling $5 trillion over the next 10 years, if current policies remain in place.

The U.S. government reported on Friday that job growth effectively stalled last month, with only about 1,000 new jobs, dimming optimism by many about how quickly the economy will significantly increase employment.

"We are not satisfied with the job numbers and we won't until this recovery is in full bloom," Snow said. "But we are beginning to see a much stronger recovery. All the evidence points in that direction."

"As you get an economy into high gear ... it does translate into jobs," Snow said.