BBC: President Obama has called the contraction of the US economy in the final quarter of 2008 a "continuing disaster" for the US.
Speaking at the White House, he also announced a new task force to help middle-class working families.
US economic output fell 3.8%, the worst quarterly contraction in more than 26 years, official figures have shown.
It is the first time the United States has seen consecutive quarterly declines since 1991.
The rate is annualised, which means that if the economy were to shrink at the same rate for a whole year as it did in the final quarter, it would shrink by 3.8%.
Task Force
President Obama said the task force, to be headed by Vice President Joe Biden, would focus on creating well-paid jobs for middle-class working families.
He also said he wanted to "level the playing field" for labour unions, saying that strong unions needed to work "side by side" with strong businesses.
"I do not view the labour movement as part of the problem. To me, it's part of the solution," he added.
The president said he had signed three executive orders to help workers, ensuring - among other things - that federal contractors offer jobs to existing workers when contracts change.
Vice President Biden said: "America's middle class is hurting. Trillions of dollars in home equity and retirement savings and college savings are gone.
"A strong middle class equals a strong America. We can't have one without the other."
The announcement went down well with union leaders.
General president of the Teamsters union said: "It is a new day for workers. Hope for the American Dream is being restored." >>> | Friday, January 30, 2009
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