CBO says Recovery Act saved millions of jobs in third quarter

The non-partisan Congressional Budget Office today released its latest estimate on the number of jobs saved by the 2009 Recovery Act, even as emboldened Republicans are vowing to rescind unspent stimulus money.

The CBO estimates between July and September, the stimulus increased employment by between 1.4 million and 3.6 million jobs. It is also estimating the unemployment rate decreased during the third quarter of 0.8 percent to 2 percent due to the stimulus act.

These are slightly better numbers than the CBO reported in August when it found that in the second quarter, the act increased the number of people employed by between 1.4 million and 3.3 million jobs.

But the Recovery Act remains a failure according to the standards set for it by the administration at the time it was passed. According to the Bureau of Labor Statistics, the unemployment rate stood at 9.6 percent in October, far above Obama administration promises that the stimulus act would keep the rate down below 8 percent.

House Appropriations Ranking Member Jerry Lewis (R-Calif.) last week proposed rescinding the $12 billion in unspent stimulus money when Republicans take control of the House in January. Democrats argue that budget cuts should come later once the economic recovery has taken hold.

The CBO continues to estimate that the stimulus bill cost $814 billion in 2009 and 2010, a higher figure than the estimated $787 billion score the bill was given when it was being debated.