Pass auto aid bill, Obama urges Congress

CHICAGO, Dec. 11 (UPI) -- Dismal unemployment news presses home the negative effects a collapse of the U.S. auto industry would have, President-elect Barack Obama said Thursday.

First-time claims for U.S. unemployment benefits climbed by more than 58,000 to 573,000 during the week ending Dec. 6, the U.S. Department of Labor reported. The 6.7 percent unemployment rate was unchanged from the previous week.

"Jobless claims are now the highest they've been in 26 years," Obama said during a news conference in which he introduced former U.S. Sen. Tom Daschle as his nominee for Health and Human Services secretary. "And this news comes at a moment when our auto industry is struggling, threatening the jobs, healthcare and pensions" of autoworkers, dealers, suppliers and others.

Obama said he could understand the public's ire "at the situation our auto companies find themselves in today." He said he has voiced his concern about the status of the industry more than a year ago when he met with Big Three executives.

"I urged them to act quickly to adopt new technologies and a new business approach that would help them stay competitive in these changing times," he said. "And while they've failed to move quickly enough toward these goals, at this moment of great challenge for our economy, we cannot simply stand by and watch this industry collapse."

The federal government should provide short-term aid to the auto industry to help it avoid collapse, he said, "while holding the companies accountable and protecting taxpayer interests."

Legislation that passed the House and is scheduled to be considered soon in the Senate, Obama said, "is an important step in that direction."