Obama heads to Florida to pitch jobs and high-speed rail

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A day after President Obama said in his State of the Union that job creation was the top priority, the weekly jobless numbers today showed marginal improvement.

First-time jobless claims dropped by 8,000 to a seasonally adjusted 470,000, the labor department announced this morning. Analysts had expected a steeper drop to around 450,000, according to Thomson Reuters.

Of even more concern, the four-week average rose for the second consecutive week to 456,250. The average had dropped for 19 weeks before the current blip, giving economists and politicians hope that the recession that has cost 7 million jobs was turning around.

Jobs and the economy has become the key political issue as Obama starts his second year in office. On Wednesday night, he argued that his administration understood the pain that Main Street felt over the economy, and pledged to do more.

The president endorsed a new jobs package, along with tax credits for small businesses that create jobs. Several plans are floating through Congress ranging from $50 billion to $100 billion.

Obama today left Washington en route to Florida, where he will announce $8 billion in grants for high-speed rail service. The administration has touted the program as a massive public works project that could add tens of thousands of jobs as well as create a piece of infrastructure that would rival the interstate highway system.

Thirteen rail corridors in 31 states will receive funds. The projects include trains with top speeds of 110 miles an hour and commuter lines with top speeds of 79 miles an hour.

Obama will be accompanied by Vice President Joe Biden, a major proponent of rail service. He famously commuted by rail to Washington from his home in Delaware for years.

The $8 billion is part of last year’s stimulus package, which the administration argues has already saved or created 2 million jobs.

-- Michael Muskal

Twitter.com/LATimesmuskal