While the July employment figures showed a better-than-expected 117,000 jobs created, Brady said it is another "dismal" report, and asked if 9-plus percent unemployment is the new norm. July unemployment fell slightly, to 9.1 percent from 9.2 percent.

Brady said the administration should reduce regulations, lower corporate tax rates and approve free trade agreements that would lower foreign barriers to U.S. goods.

Passing pending free trade agreements with South Korea, Colombia and Panama would create 250,000 jobs. And ending last year's healthcare law would create another 800,000 jobs, Brady said.

"There's much more that needs to be done, but perhaps nothing more important than the White House ending its campaign of demonizing the free market and the job creators — who built the greatest economy in the world and can do so again if Washington will get out of its way," Brady added.

He also argued more generally that the problem is the idea that Washington can solve all problems, which leads to "Washington-centric" solutions.

"That's the problem," he said. "Government needs to get out of the way. It needs to end its job-killing rhetoric, regulations and intervention and give Americans confidence to do what we do best — innovate and lead the world in creating economic opportunity based on what the market demands — not what Washington demands."

JEC Chairman Sen. Bob CaseyRobert (Bob) Patrick CaseyDems walk tightrope on Pompeo nomination Overnight Energy: Trump NASA pick advances after drama | White House office to investigate Pruitt's soundproof booth | 170 lawmakers call for Pruitt to resign Senate blocks bill that opponents say weakens water pollution rules MORE Jr. (D-Pa.) said Friday that the July jobs report shows that Washington "must move quickly to enact common-sense measures to create jobs and strengthen the economy."

He recommended a payroll tax credit for small companies and a national manufacturing strategy that helps make U.S. producers more competitive and "cracks down on China's currency manipulation."