CBS "EARLY SHOW" INTERVIEW WITH LABOR SECRETARY ELAINE CHAO INTERVIEWER: RUSS MITCHELL
MR. MITCHELL: The first half of 2007 was a good one for the U.S. economy, but now trouble in the housing market is slowing things down a bit. Thousands more people a week are filing for unemployment. That is not good news this Labor Day, when we honor working men and women.
Elaine Chao is the U.S. secretary of Labor.
Madame Secretary, good morning to you.
SEC. CHAO: Good morning.
MR. MITCHELL: As we observe Labor Day 2007, what do you think? Is the American worker in better shape than he or she was a year ago?
SEC. CHAO: Well, you know, we are releasing a study on the workforce in America today, and it's, in fact, called "America's Dynamic Workforce." It shows basically that the fundamentals of our economy remain strong, that unemployment is low, inflation is low, and that the American workforce is the most competitive and productive in the world.
MR. MITCHELL: Let me ask you about some of the problems we've seen in the economy right now. Of course, the home foreclosure rate is going through the roof. You're seeing a credit crunch now. Unemployment actually was up in July. But when you look at your crystal ball, what is the biggest obstacle facing American workers over the next few months?
SEC. CHAO: The residential real estate market is obviously of concern. And that's why the president proposed Federal Housing Authority reform on Friday. Secretary Paulson and Secretary Jackson have done a great job in monitoring the situation, and they've introduced a number of measures that will ensure that homeowners get to keep their homes and avoid foreclosure.
But what we're also seeing is that the construction market in the commercial real estate sector is actually very strong, and it's offsetting the residential market as well.
MR. MITCHELL: Madame Secretary, let me ask you --
SEC. CHAO: So overall -- yes.
MR. MITCHELL: - very quickly -- I apologize --
SEC. CHAO: Sure.
MR. MITCHELL: - about what President Bush did last week to help those folks with subprime mortgages keep their homes. Analysts are calling that a band-aid that really won't have any long-term effect. Is that a fair assessment, in your mind?
SEC. CHAO: Well, this is only a temporary solution, and that's because this problem is temporary. Overall, the fundamentals of the economy is quite healthy. Unemployment is low. It's about 4.6 percent. It's lower than the average unemployment rate of the decade of the 1990s, which was 5.7 percent. In the last 46 months we've had consecutive job growth. We've had over 8.2 million net new jobs created in the last 46 months. So overall, we are seeing steady, consistent growth in our economy.
But what we are seeing -- and this is a study that we are releasing today -- and that is that our country is facing a skills gap. The majority of the new jobs that are being created require higher skills, more education. And so it's more important than ever before to help our workers access training and education so that they can take advantage of the growing opportunities in these high-growth sectors that are developing.
MR. MITCHELL: Madame Secretary, another issue; I know you have called for an independent review of the Mine Safety and Health Administration's handling --
SEC. CHAO: Yes.
MR. MITCHELL: - of the Utah Crandall Canyon Mine where those six miners are still missing. Was there any red flag in particular that had you call for that?
SEC. CHAO: The tragedy at Crandall Canyon was heartbreaking. And I think the families deserve to know the full story. So we want to make sure that we review everything that has been done, from beginning to end, that resulted in loss of lives, and not only of the miners, but also of the rescue team.
MR. MITCHELL: Labor Secretary Elaine Chao. Madame Secretary, thank you so much for joining us.
SEC. CHAO: Thank you.