By The Gazette Editorial Board

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On the eve of Labor Day 2011, jobs for Americans has become an issue equal to or greater than the national debt debate. The national unemployment rate is stuck at 9.1 percent and when you add the number of people who have stopped looking or taken part-time or lesser jobs (underemployment), the number affected doubles.

Putting more people to work, primarily in the private sector, is critical to pulling ourselves out of the stalled U.S. economic recovery and generating the resulting tax revenue growth that, along with wise spending reductions, can help reduce our humongous national debt. But policymakers must get their act together. President Obama will try to jump-start some action on Thursday when he presents his administration’s proposal on national television.

Iowa, in general, is better off than most states. The unemployment rate is at 6 percent. Our economy has shown some modest growth through much of the past year. Nonetheless, there is pain if you look deeper.

The latest quarterly survey of Iowa’s largest employers revealed declining optimism and a cautious mood compared to a year ago. They see the economy as fragile and unpredictable. That reflects a national concern, where giants of industry and other business sectors are pooling their cash, holding back on investments, expansion — and hiring more people.

The Iowa Policy Project’s annual State of Working Iowa offers more sobering analysis. Underemployment is about double the unemployment rate. The number of people without a job for six months or longer has nearly tripled. Iowa is still 72,600 jobs behind the early 2008 levels. And, when adjusted for inflation, wage rates at the end of 2010 were lower than a decade ago at virtually all levels.

More government spending is not the best way to add more jobs. When the private sector is operating smoothly and consumer demand is high, jobs are added without piling up more government debt.

But slashing too many public jobs to reduce public debt is a risky move in the short term, until the private sector is humming again.

Instead, we need clear, long-term direction and decisions from Congress about government spending, debt reduction, health care and regulation. Neither small or large businesses can plan as well or are prone to major commitments without knowing what the rules and playing field will be beyond the next month or year. And without more confidence about the future, there will be fewer opportunities for Americans who want to work.

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