Obama puts $2.9b into solar power

President Barack Obama announced on Saturday the awarding of nearly US$2 billion ($2.9 billion) for new solar plants that he said will create thousands of jobs and increase the country's use of renewable energy sources.

Obama disclosed the funding in his weekly radio and online address, saying it is part of his plan to bring new industries to the US.

"We're going to keep competing aggressively to make sure the jobs and industries of the future are taking root right here in America," Obama said.

The two companies that will receive the funds from the president's $862 billion economic stimulus are Abengoa Solar, which will build one of the world's largest solar plants in Arizona, creating 1600 construction jobs; and Abound Solar Manufacturing, which is building plants in Colorado and Indiana. The Obama Administration says those projects will create more than 2000 construction jobs and 1500 permanent jobs.

Obama's announcement came a day after the Labor Department reported that employers slashed payrolls last month for the first time in six months, driven by the expected end of 225,000 temporary census jobs. Meanwhile, private-sector hiring rose by 83,000 workers.

The unemployment rate dropped to 9.5 per cent.

Obama said that while it may take years to bring back all the jobs lost during the recession, the economy is moving in a positive direction.

- AP