and the administration is already doing a lot of damage control. and now to the white house. what are they saying behind you? >>reporter: the jobless rate is stuck at 9.6 percent and the president and the aides are disappointed at a business outside washington today, the president said that private sector job growth is increased the past nine months, which is good thing, but 159,000 government jobs lost last month tipped the scales in the wrong direction. >> these continuing layoffs by state and local governments, teachers, police officers and firefighters and the like would have been worse without the federal help we provided the states the last 20 months; help that republicans in congress have consistently opposed. >>reporter: there could be more bad news, the league of cities predicts that local governments will lay off 480,000 people this year and next and that doesn't include layoffs