White House braces for weak jobless report

The White House is bracing for a new jobs report Friday that is expected to show paltry hiring by the private sector.

The report from the Labor Department is expected to show the nation’s unemployment rate rising above 9.5 percent.

While weekly claims for unemployment fell on Thursday, a private report earlier this week projected businesses would lose 10,000 jobs for the month.

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President Obama, under pressure to bolster the sluggish economy with only two months before the midterm election, is working on new business tax breaks to provide a jolt to the sluggish economy.

In Rose Garden comments on Monday, Obama said he and his economic team were looking at measures that could promote growth and hiring in the short term, including tax breaks.

The Washington Post on Thursday reported the president is considering a permanent extension of the research and development tax, as well as a payroll tax holiday that could let businesses keep $300 billion.

The report comes as a wave of new projections suggests Democrats are in for a drubbing in House and Senate elections in November. Republicans held a 10-point advantage in Gallup’s most recent poll of whether voters would support a generic Democratic or Republican candidate.

Markets rose Thursday for a second day in a row after a report Wednesday that showed stronger than expected growth in the U.S. manufacturing sector.

The Dow Jones Industrial Average has jumped more than 300 points in the last two days, though those gains could be erased if Friday’s report from the Labor Department is more disappointing then expected.