Newspaper: Stimulus Brings Few Private-sector Jobs

DETROIT (AP) — The federal stimulus funding that has reached Michigan so far has created few private-sector jobs and some recipients of the cash have overstated the number of jobs created or protected, an analysis by the Detroit Free Press shows.

The newspaper's examination of the more than 1,800 awards to agencies, departments, municipalities and firms in Michigan under the stimulus act found the biggest impact was spurring or protecting public-sector or summer jobs — not private-sector jobs.

At first glance, the impact of the federal stimulus act thus far looks like good news for Michigan, which in September had the nation's highest unemployment rate at 15.3 percent.

Officials said that by Sept. 30, some 22,500 jobs had been created or saved in roughly the seven months since Congress passed the stimulus plan.

Michigan was promised $5.2 billion in stimulus money, $1.2 billion of which had arrived.

Close inspection reveals flaws in the claims and raises doubts about the mammoth spending bill's impact to date. The Free Press' analysis revealed that some stimulus money recipients have greatly overstated the number of jobs created or protected.