Return to Transcripts main page

CNN Newsroom

Labor Secretary Hilda Solis Discusses Job Reports, Economy; Affording College: Challenge for High School Seniors; New Unemployment Numbers are Out; Job Loss Can Make You Sick; President Obama & Gay Rights

Aired May 08, 2009 - 09:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

BETTY NGUYEN, CNN ANCHOR: All right. You know, after a year of suspicion an ex-cop busted. Drew Peterson arrested on charges of killing his third wife, and he is still suspected in the disappearance of his fourth wife.

Plus, a fast-moving wildfire spreads in Southern California. Thousands escape the flames. We have a live report for you.

And a jump in the jobless rate. A new sign of recovery still a ways off. But there is light at the end of the tunnel.

It is Friday, May 8th. I'm Betty Nguyen in for Heidi Collins today. And you are in the CNN NEWSROOM.

Well, the nation's economy is a turnaround under way? That's the big question. Because new employment numbers came out just a minute ago. And there are some faint glimmers in all of it.

Let's take a closer look at it. Christine Romans is part of the CNN Money Team. She joins us now.

So, Christine, looking at these numbers, we're seeing the pace of job losses slowing any?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: That's exactly what this would suggest. The pace of job losses is slowing. In the month of April, 539,000 people lost their job. That's a whole lot of folks, Betty. I mean I can't sugarcoat that.

It's a lot of people lost jobs because companies are still laying folks off. And the unemployment rate rose to 8.9 percent. And some of my sources, economists are e-mailing me and saying look, any time you see a jobless rate jump up to 8.9 percent, you know, that's not good news.

But what is the good news here is that many people have been expecting 600,000 jobs to be lost, and it wasn't quite that bad. They're saying it suggests that maybe those peak months at the end of last year and the beginning of this year of just massive layoffs might be slowing down a little bit.

So people still losing their jobs, but maybe we've seen a peak in how many people are. Why is the jobless rate still rising? Well, that's because it's not as if companies are really hiring. They're just maybe not laying off as dramatically as they were before. And again, this is just one month of data. So we're going to have to see how it plays out after that.

Let me break down some of these numbers for you and show you just sector by sector, by race and gender, how this breaks out for people, because the labor market is a very big, dynamic place, and it's different, depending where you are and who you are, quite frankly.

Adult men saw their unemployment rate rise from 8.8 percent in March to 9.4 percent in April. Adult women, their unemployment rate also up a bit here, just a little bit.

When you break it down by race, blacks had an unemployment rate in a month of 15 percent. That's a jump from 13.3 percent. And Hispanics saw their unemployment rate decline slightly to 11.3 percent from 11.4. Whites, in case you're wondering, 8 percent is the jobless rate there.

So, overall, a jobless rate of 8.9 percent. But when you break it down, you can see it's very different depending on where you are. Also, when you look at what kind of degree you have, Betty, somebody with a bachelor's degree right now, their jobless rate is rising, 4.4 percent if you have a bachelor's degree. If you have high school and no college, it's way up to 9.3 percent.

So policymakers look at these kinds of numbers for a lot of different reasons, but mostly because you can see for a college education it's essentially full employment out there. It's much, much better for people who have a college degree. And that tells you a lot about the nature of this recession, who it's hurting, who's getting hurt the most.

And then of course, it has positive implications for the stimulus and for however we're going to try to get out of this recession.

NGUYEN: Yes, a lot of issues there. All right, Christine Romans with the latest. Thank you on that, Christine.

We also want to get the view from the top here, from the very top when it comes to the job market. We're going to talk to labor secretary Hilda Solis. What are the trends, what are the secrets behind these numbers? We're going to find out at the bottom of the hour.

But right now, we want to get you to a developing story that we are following this morning, the fires in Santa Barbara, California. Strong winds pushed the fire into more neighborhoods. And that's forced the evacuation of an estimated 30,000 people.

So far, at least 75 homes have burned. But there are a thousand more homes that are still in danger of being next. Here are some live pictures. You can see the flames are still really billowing black smoke into the air.

Firefighters from around the state, they have joined the fire lines. There are as many as 2300 helping out right now. But 11 have been injured.

You know it really has been an uphill battle for firefighters, literally. The wildfires burning in thick brush on hard-to-reach hillsides throughout the area. But now that might be changing.

Our Kara Finnstrom has been there on the fire lines for us this week. She joins us now from Santa Barbara, California.

So, Kara, what's the latest?

KARA FINNSTROM, CNN CORRESPONDENT: Well, you mentioned all those firefighters helping on the front lines. All these fire trucks just pulled in behind us a few moments ago, and they're getting ready to do a shift change.

These firefighters have been working long, hard hours. And overnight, more problems. Those winds whipped up again and actually took this already destructive fire and pushed it into some new neighborhoods.

You've been looking at some live pictures. We took some video in neighborhoods overnight where this fire actually went into more of the traditional neighborhoods. Up until now we've been seeing it largely in those remote areas, homes scattered throughout canyons.

Well, now they're in these traditional neighborhoods with the homes right next to each other. And that presents new challenges for firefighters, because the fire can spread more quickly there.

They are hopeful, though, that they will be able to get their resources a little bit better. It's a little bit easier to reach, a little bit easier to bring in the water tankers and to excess -- access, you know, large amounts of water.

So a big firefight going on at this hour. The good news, potentially good news, is that the weather is beginning to change. Temperatures will be dropping in throughout the weekend. And then also the winds dying out. And of course the winds have been crucial.

NGUYEN: Absolutely. Those winds are key to fighting that.

All right, Kara, thank you so much for that.

Want to tell you about this. A former police sergeant behind bars this morning, accused of killing his third wife. Drew Peterson still, though, the prime suspect in the disappearance of his fourth wife, Stacy Peterson.

CNN's Susan Roesgen reports now on Peterson's arrest.

(BEGIN VIDEOTAPE)

SUSAN ROESGEN, CNN CORRESPONDENT (voice-over): (INAUDIBLE) police took former cop Drew Peterson into custody for the murder of his third wife, Kathleen Savio. It is the latest twist in an investigation that started a year and a half ago. (INAUDIBLE) disappeared.

LARRY KING, CNN ANCHOR: Were you ever physical with her?

DREW PETERSON, HUSBAND OF STACY PETERSON: Never. And I kind of challenge anybody out there to find anybody that has ever even seen me mad. So...

KING: You don't have a temper?

PETERSON: No, it's...

KING: Are you in love with...

ROESGEN: (INAUDIBLE) 30 years younger than he is ran off with another man. But police named Peterson their number one suspect in her disappearance. Then they decided to exhume the body of wife number three.

(END VIDEOTAPE)

NGUYEN: All right. We're having some audio difficulties. Let's bring in now Susan Roesgen who joins us outside the jail there where Drew Peterson is locked up.

Susan, what's next in this case?

ROESGEN: Well, Betty, he is facing a $20 million bond. He's locked up on a $20 million bond. And in just a few hours he's going to make his first court appearance here, his arraignment. He will make his plea.

And his lawyer is likely to argue that that $20 million bond is way too high. He'll try to get it lowered. He's not expected to be able to do that. It's expected that Drew Peterson will wind up still back here in the jail behind me. Betty?

NGUYEN: Susan, what about his children? Who's taking care of them? What's going on there?

ROESGEN: Well, he has two young children, four and six, with Stacy, the wife who's disappeared, and he has two teenage boys with Kathleen Savio, the wife of whom he's accused now of murdering. He also has an older son, a son who's actually a police officer in Oakbrook, Illinois. And that son now apparently will take care of the other children, the younger children, they're all younger than 18.

NGUYEN: Yes. We're going to watch this play out. Susan Roesgen joining us live.

Thank you, Susan.

A suspect in the shooting death of a Connecticut college student appears in court this hour. Stephen Morgan surrendered to police last night. Now he's charged with first degree murder in the case of Wesleyan University student Johanna Justin-Jinich. She was killed Wednesday in a book store cafe near campus. And after the shooting, police found one of Morgan's journals suggesting that he was targeting Wesleyan students and Jews.

Justin-Jinich had filed a harassment complaint against Morgan two years ago when they were in a summer school class at New York University.

I want to show you about another black eye for baseball. But do fans even care anymore? This time, Manny Ramirez gets busted. The Dodgers slugger won't be swatting home runs for a while after failing a drug test.

ROB MARCIANO, AMS METEOROLOGIST: More than just Manny.

Good morning, everybody. I'm Rob Marciano at the Severe Weather Center. We do have rough weather moving across the midsection of the country. We'll run it down when the CNN NEWSROOM comes right back.

(COMMERCIAL BREAK)

NGUYEN: Take a look at this. Trapped in a car surrounded by rising floodwaters? A frightening scenario that actually happened in -- actually happened to a couple, in fact, in Montgomery, Alabama.

Luckily, two strangers came to their rescue. The men waded out into the fast moving waters to pull the couple out of their car and on to dry land. But another driver that ran into trouble, well, that driver is still missing, and officials fear he may have drowned.

More severe weather threats in the forecast to tell you about. Meteorologist Rob Marciano is in the CNN weather center with all of that.

(WEATHER REPORT)

NGUYEN: You know, one of baseball's biggest names is now sidelined because he got caught cheating. Manny Ramirez of the Los Angeles Dodgers is just the latest player tainted by a drug scandal.

CNN's Casey Wian takes a look.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): There's a baseball saying, "Manny Being Manny," the way to explain the often odd behavior of one of the greatest hitters in history. But the news that Los Angeles Dodgers outfielder Manny Ramirez has been suspended for 50 games after testing positive for a performance enhancing drug seems to defy explanation.

In a statement released by the Players Association, Ramirez said, "Recently I saw a physician for a personal health issue. He gave me a medication, not a steroid, which he thought was OK to give me. Unfortunately, the medication was banned under our drug policy. I'm sorry about this whole situation." Ramirez helped revitalize a struggling baseball franchise, leading the Dodgers to a division championship last year and to a Major League record 13 straight home wins to start this season.

Ramirez was one of the few sluggers in recent baseball history not tainted by steroids or other banned substances. Now he joins a long list of players with Hall of Fame statistics who have scarred the national pastime and used ignorance as an excuse.

ALEX RODRIGUEZ, NEW YORK YANKEES: I didn't think they were steroids. I mean, that's, again, part of being young and stupid.

DAVID CARTER, SPORTS BUSINESS GROUP: I think the fans are rather complicity in the entire situation. They talk a big game about how they don't like to see performance enhancing drugs but they still buy tickets. They still tune in.

WIAN: Even the White House weighed in.

ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: It's a shame. My sense is it's a great embarrassment on Major League Baseball.

WIAN: Major League Baseball lists 88 substances as banned performance enhancing drugs. Neither the union nor Major League Baseball disclosed which banned substance Ramirez took. ESPN, citing two sources, reports Ramirez tested positive for a female fertility drug commonly taken as part of a steroid-using cycle.

The Dodgers left-fielder says he's been advised not to say anything more for now. During his suspension, Ramirez will lose $7.7 million of his $25 million salary.

(END VIDEOTAPE)

NGUYEN: All right. So playing without Manny Ramirez, the Dodgers, they lost their first game at home this year breaking their streak of 13 wins in a row. Reaction around the league, well, it was mixed. Some were surprised by the news, others were just disappointed.

So do you have strong feelings on this? Post them on our blog at CNN.com/newsroom.

You know, another Manny also stirring up some controversy. Boxing champ Manny Pacquiao returned home to the Philippines today against the wishes of the government there. The Filipino government asked him to stay away, because they're afraid he may bring the H1N1 flu virus back with him from the U.S.

Pacquiao retained the lightweight heavyweight championship -- or the light heavyweight championship this past weekend with a second- round knockout. He says he and his entourage have no flu symptoms.

Well, thousands flee Pakistan as the Pakistani army battle the Taliban. A military operation with broad political implications.

(COMMERCIAL BREAK)

NGUYEN: In Pakistan, a full-scale offensive today in the volatile Swat Valley region. Pakistani fighter jets and helicopter gunships pounding suspected Taliban positions. That's in the northwestern part of the country bordering Afghanistan. Well, hundreds of thousands of residents are fleeing in terror.

CNN's Ivan Watson is following the developments from the Pakistan capital of Islamabad.

And Ivan, let me ask you. There are reports that some 140 militants have been killed in the last 24 hours. What's the latest on this?

IVAN WATSON, CNN CORRESPONDENT: Betty, we have to treat these numbers with caution. The Pakistani military has been claiming to have killed dozens of Taliban fighters every day for the past two weeks since they started this offensive into northwest Pakistan.

And we haven't had any evidence really to back up these claims. It's a little hard -- it's almost impossible for us to confirm these times of claims. But definitely there have been a number of operations across northwest Pakistan with air strikes and artillery strikes.

And we believe there have been some casualties on the side of the Taliban. We just can't confirm those numbers for you, I'm sorry.

NGUYEN: That's all right. Ivan, maybe you can give us more information on this. The mass civilian exodus and also the fact that the Taliban still occupies some buildings in Mingora?

WATSON: Yes, this we definitely know about, because the huge numbers of people moving south, trying to escape the conflict zone, they're really staggering, with the United Nations estimating about 300,000 people are on the move or expected to get on the move in the near future.

And you've already had 150,000 to 200,000 that have succeeded in escaping. You know I spoke with one man, who I cannot identify, because he's totally traumatized and terrified of the Taliban. He escaped with his family from the Swat Valley yesterday when there was a break in the curfew of several hours.

He said the road was jammed with thousands of people riding on anything possible, rickshaws, tractors. And he said he wept, and he started crying in front of me describing 4-year-old and 5-year-old children walking barefoot on the side of the road, actually having to walk over roadside bombs that had been planted in the road by the Taliban insurgents presumably to block the Pakistani military if and when it tries to launch a ground offensive into the Swat Valley.

Really, harrowing stories coming out from these refugees that have flooded out of the conflict zone, Betty.

NGUYEN: Very tragic. CNN's Ivan Watson joining us live. Thank you, Ivan.

Now I want to take you to neighboring Afghanistan. The first of President Obama's troop surge has arrived in the country. But there are concerns that they're getting there ahead of crucial equipment need to battle the Taliban. Defense secretary Robert Gates heard those complaints when he visited the war zone yesterday.

And our Pentagon correspondent Chris Lawrence reports now from Kabul.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT (voice-over): On to one aircraft and stepping off another. Defense secretary Robert Gates dashed from Kabul to Kandahar and several bases in between to hear firsthand what troops need. Several Marines told him communications equipment.

ROBERT GATES, U.S. SECRETARY OF DEFENSE: I heard this on several occasions today that the equipment is coming in behind our troops and is not here and available for them when they arrive.

LAWRENCE: The U.S. is rushing 21,000 more troops into Afghanistan to secure upcoming Afghan elections. And in that rush, Marines say they're beating some of their equipment here.

GATES: One of the reasons that we are bringing forces into the country as quickly as possible from the United States, which is part of the logistical issue, is to provide security before the elections take place.

LAWRENCE: Secretary Gates also expected MRAPs, vehicles that protect troops from roadside bombs. And he promises that more are on the way. Gates budgeted nearly $3 billion to buy 1,000 vehicles this year specifically designed for Afghanistan's mountainous terrain.

GATES: Thank you guys for being out here, what you're doing.

LAWRENCE: He also told one Marine, don't worry, when the Marine asked if American troops will be sent into Pakistan to fight the Taliban there.

GATES: I think that's fully in the category of rumor. We won't be putting ground troops in Pakistan.

LAWRENCE (on camera): Gates also said that the Marines' equipment is not arriving late because it's tied up in Iraq. He says it's a logistical problem and one that he's determined to look into.

Chris Lawrence, CNN, Kabul.

(END VIDEOTAPE)

NGUYEN: Still in Afghanistan, a senior U.S. military official tells CNN up to 50 people were killed Tuesday in air strikes in western Afghanistan. The military launched air strikes on suspected Taliban targets in Farah Province in the western part of the country.

The official says among those killed, men, women, children and insurgents. The military says at least some of the deaths were caused by insurgents using civilians as human shields.

Well, Pope Benedict on his way to the holy land and a collision with the Mideast conflict. The Pope beginning a weeklong tour of the region in Jordan today. He'll meet with Muslim religious leaders there and then next week he's going to visit Israel and the Palestinian territories, describing the trip there as a, quote, "high wire act."

CNN senior Vatican analyst John Allen says both Israelis and Palestinians have great hopes and fears for what the Pope might say.

We have the latest jobless numbers, the newest clues to where the economy is headed. And just minutes from now we are going to talk to the secretary of labor.

(COMMERCIAL BREAK)

ANNOUNCER: Live in the CNN NEWSROOM, Betty Nguyen.

NGUYEN: Well, it is a big day on Wall Street. Investors have the results of the bank stress tests to consider, as well as the April jobs report, which shows more than 500,000 jobs were lost.

But is that really good news? Stephanie Elam at the New York Stock Exchange with a preview of how Wall Street will react, as we just heard that opening bell.

Hey there, Stephanie.

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Hi, Betty. Yes, the headlines are bad, but here's the deal. They're not as bad as Wall Street was expecting, so stocks are set to rally. We've already opened up in the green.

Now as you mentioned, 539,000 jobs were lost last month. Still a huge number but down sharply from the month before, when nearly 700,000 jobs were lost. On top of it, the unemployment rate. It jumped to 8.9 percent as expected. That is a 25-year high. But Wall Street is taking the report as validation that the economy is in fact stabilizing.

Adding to the optimism, the government released the results of the bank's stress tests. Ten of the nation's 19 biggest banks need to raise about $75 billion. Some analysts fear the banks would need to raise more than -- much more than that.

On the earnings front, the troubled insurance giant AIG lost nearly $4.5 billion in the first quarter. That's a huge improvement over the $61 billion it lost that AIG reported in the previous quarter. AIG shares are up 4 percent in the pre-market.

And also taking a look at Toyota. It posted a $7.7 billion quarterly loss, the worse in its 72-year history. Toyota lost more money than its rival GM did, but Toyota is still in much better financial shape. Toyota shares that do trade here are down two percent.

Overall, taking a look at the markets. The Dow Industrials are on the up side by 91 points at 8501. The NASDAQ is on the up side by 16 points at 1732. And the S&P 500 better by one percent at this time.

Betty, I think I just lost you, so I'm just going to toss back straight to you.

NGUYEN: All right. Thank you so much for that, Stephanie.

We want to talk to you about this for just a second, because a wildfire burning out of control in southern California. And it's forced more homeowners to evacuate. The fire has moved into neighborhoods in Santa Barbara, California, destroying at least 75 homes so far.

And officials have expanded evacuation orders to around 30,000 people now. That is more than double the number we had at this time yesterday. And there are more than 2000 firefighters on duty trying to put this thing out. At least 11 of them have been hurt.

We'll have much more on the progress that the firefighters are making next hour. But right now, let's get the latest on the weather outside.

(WEATHER REPORT)

NGUYEN: Paying for college, even tougher for parents dealing with the economic downturn, making tough choices with their kids' futures at stake. It is part of a closer look at the "Class of 2009."

(COMMERCIAL BREAK)

NGUYEN: One of the biggest challenges facing the class of 2009, the economy. For high school seniors, many are wondering how to pay for their higher education.

Well, as our Brooke Baldwin reports, it's even harder when some kids' college funds are tied up in the stock market.

(BEGIN VIDEOTAPE)

BROOKE BALDWIN, CNN CORRESPONDENT (on camera): Sad to leave high school or ready for college?

ZACHARY STINES, STUDENT: Both.

BALDWIN: Both?

Z. STINES: Yes.

BALDWIN (voice-over): With eight advanced placement courses under his belt and possible selection as salutatorian, you could say Zachary Stines is one stellar student.

Z. STINES: I've never made a "B." So...

BALDWIN (on camera): You've never made a "B"?

Z. STINES: Never made a "B."

BALDWIN (voice-over): So it's no surprise this South Cobb High School senior got accepted to all three schools he applied to -- Wake Forest, Furman and the University of Georgia. The next question, where to go, and perhaps more importantly how to pay for it.

For years, both of his parents have worked full-time, part of the reason he set aside money in stock so Zachary and his brother can go to college.

Z. STINES: They never really told us the numbers. They just kind of...

BALDWIN (on camera): You just knew your parents were putting some money away.

Z. STINES: Exactly.

BALDWIN: I don't need to worry about this?

Z. STINES: It was something that had to be discussed. You know, we can send you here, but, you know, it's going to be tough.

MONA STINES, ZACHARY'S MOTHER: The money, you know, it did well, and it was a great investment initially.

BALDWIN (voice-over): By the end of 2008, Mona and Chuck Stines stock investments plummeted from $140,000 to $70,000. Divide that by their two sons, grand total, $35,000 for Zachary for four years of college. And while he was awarded some scholarships, Zachary's dad realized in order to graduate without a mountain of debt, Wake Forest and Furman at about $50,000 a year, are economically out of the equation.

CHUCK STINES, ZACHARY'S FATHER: With the scholarship money he got, which, you know, you can't look a gift horse in the mouth, but at the same time, it still meant $80,000 out-of-pocket, you know, for him to go for four years.

M. STINES: It's disappointing because when a child works as hard as Zachary has worked to get to where he is, you'd like to think that he could go anywhere he wanted to go.

BALDWIN: Keep in mind, the Stines say they had the bulk of those college savings in stocks. So what would a financial planner advised?

MARY CLAIRE ALLVINE, FINANCIAL PLANNER: Bond funds, even money market funds. They don't pay attractive yields unless you take incremental risks. But once you've gotten to the point where you say, if I lost what I've already got, our plans would be undermined, it's time to go to a very conservative, protect your principal strategy.

Z. STINES: I got up that morning. We went over. I met the folks at Harrison High School.

BALDWIN: Zachary's parents won't be paying a penny in tuition as they send their son to U.G.A., thanks to the state's Hope Scholarship. The senior is excited, but can't help but think.

Z. STINES: Man, don't you hate to be the class of '09.

BALDWIN: Before Zachary even gets to college, he has a head start on economics 101.

Brooke Baldwin, CNN, Atlanta.

(COMMERCIAL BREAK)

NGUYEN: Well, coming up next hour, more on our special look at the "Class of 2009." We're going to be talking to another high school senior getting ready for college, but this one, just 12 years old.

You don't want to miss that.

We also have a lot of responses to our blog question yesterday about Bristol Palin promoting abstinence as a way to curb teen pregnancy. Well, Palin is the 18-year-old daughter of Alaska Governor Sarah Palin, and she's one of the most high profile, unwed teen mothers.

So we asked, will kids listen to an unwed mother about the virtues of abstinence. And is she a good role model. And here are some of your comments.

One viewer wrote, "This is like telling your kids not to smoke pot while you blaze up right in front of them. Sorry, but monkey see, monkey do."

And a 72-year-old grandmother who supports sex education wrote, "Abstinence when hormones are raging in teenagers is a foolish choice for avoiding babies."

You can check out our blog. Go to cnn.com/newsroom and click on Heidi.

All right. Down in the dumps after losing your job. And now a new study shows it's not just your mood but your health that's at risk.

(COMMERCIAL BREAK)

NGUYEN: New unemployment numbers, and maybe more reason for optimism. Last hour, we learned that there were fewer jobs lost in April than the month before. 539,000 jobs disappeared compared to 663,000 in March.

Now that may suggest that employers are backing off a bit from the wide-scale layoffs. But they are still not hiring new workers. The unemployment rate has climbed to 8.9 percent. That is the highest rate since the fall of 1983.

Here's a closer look at the numbers for you. Adult men saw their numbers climb from 8.8 percent to 9.4 percent. African-Americans took a big hit. Their jobless rate jumped from 13.3 percent to 15 percent. Adult women saw their unemployment claims bump up 0.1 percent. Hispanics saw their rate actually decline a slight bit.

But later this morning, the president will outline new help for the nation's unemployed and among the highlights new rules that would allow the unemployed to enroll in college or training programs without surrendering their benefits. President Obama is due to speak at 11:30 Eastern. And we, of course, will carry that for you live.

But let's get back to those numbers. What do they mean? Let's get the view from the very top. Labor Secretary Hilda Solis is in Washington, and she joins us right now to give us a big picture look.

Secretary, thanks for your time this morning.

The first thing I want to ask you about is the unemployment rate. That has jumped, to the highest since we've seen in 1983. What do you think about this, and what's being done?

HILDA SOLIS, U.S. SECRETARY OF LABOR: Well, it is a sobering figure. It jumped to four percentage points. We do realize that there was a drop slightly, however, we know that we have to be very aggressive. We still have to do much work in getting and rolling out our programs for employment and training and for assistance for dislocated workers. All of which is going to be rolling out starting this month and in June.

Summer youth employment programs will now be beginning their start-up efforts this month. We know that employment and training, and especially this new priority to get people into financial aid assistance, for example, to attend community colleges through the Pell Grant Program that the president will announce is something that will provide additional assistance for people to get into job training.

That's what's going to help stabilize our economy for future growth, because we need people to retrain for new jobs -- green jobs, health care and IT.

NGUYEN: Secretary, you say that's rolling out this month. Will that actually be available to the people on the streets?

SOLIS: Currently, we have already administered about $45 billion to the states. And that is for dislocated workers, for unemployment insurance. So there is training opportunities available now.

What I would encourage people to do if they just lost their job is to step into a one-stop center. One of their local workforce programs and get information about how to look into finding jobs. There are jobs available now. People just need to go and do a little bit more searching. And also, maybe look at changing a career path, if that's what it's going to take. And all of those opportunities are available now.

NGUYEN: Let's talk about that career path. I want to talk just for a minute about the millions of people that are affected by this.

And our viewers, in fact, have a lot of questions for you. I want you to listen to one from Ralph. And this is what he says, "I have obtained a bachelor's degree and have over two decades of being employed in the workforce. However, when will suitable employment be available which will match my credentials?"

And his point, Secretary, is what's being done to help the underemployed?

SOLIS: Well, one of the things, as I said earlier, was to help provide assistance in maybe new job training and to programs, for example, in renewable energy and in health and in -- in technology.

I think these are areas that we're going to see a good figure of jobs coming about. It won't happen right away, but certainly we do have a shortage of people that are trained in these areas. I know, for example, that there are many people that are training right now as electricians to install solar panels. Those jobs pay pretty well. And we don't have enough people that are trained up to do that.

Likewise, we also want to see people getting into health -- health care jobs and, also, IT. There is a growth segment there.

And there is money. Two hundred and fifty million dollars that will be sent out from our department starting in June for health care and IT. And for green jobs, about $500 million that will be going out. And solicitation of those grants will be going out in June; we'll make the award in November.

But there's plenty of time right now for people to start investigating what kinds of programs are out there at the community college, vocational schools and also apprenticeship programs. And I'm particularly pleased that we're going to be able to help the youth, because the youth right now is suffering from really high unemployment rates.

NGUYEN: Well, that's what I wanted to ask you, because we've been really focusing on the class of 2009. A lot of them very worried. So what's your advice to them?

SOLIS: I would suggest that if there isn't a job right now that they know of, that they go into one of our one-stop centers and start looking to see what career growth opportunities are there. What job closely lines up to what their skill set is and if they need to maybe take an additional class. They may be able to benefit from this additional Pell Grant money that's going to be made available if they don't have a job now and they are unemployed. So there's a lot of different options. And I think the better we are - if we can tell people to go directly to these job centers, to pick up this information. Again, I just want to underscore, there are jobs. It's going to be slow. There's no quick fix, but we have to have patience and have hope. And I know the American public feels that way because we do see some of those stresses falling a little bit lower.

For example, in the financial markets, we're seeing more people refinancing their home. We're seeing more transparency now in our banking industry. And that's going to help, because people, small businesses need that credit. They need to be able to use that. And you do see some little upswing in consumers, consumer spending.

NGUYEN: Yes. A little glimmer of hope, but there is indeed a lot of need still out there.

SOLIS: Absolutely.

NGUYEN: Secretary of Labor Hilda Solis, thank you so much for your time today.

SOLIS: Thank you, Betty. Thank you so much.

NGUYEN: We appreciate it.

Let's keep talking about the sagging economy because there are layoffs every day. It is hard. Now, a new study indicates losing your job can actually make you sick.

CNN senior medical correspondent Elizabeth Cohen is here to explain the impact of this.

So you lose your job, you know you can't make your payments, this and that. All that combined, and now it can even make you sick?

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Right. I think people understand that it can make you psychologically sick.

NGUYEN: Right.

COHEN: It's very hard on the brain, but it's also hard on the body. So let's take a look at what this new study found.

What they found is that when folks were laid off, they were 83 percent more likely to develop new health conditions. So in other words, they didn't have these health conditions before they got laid off.

Let's take a look at what kind of health conditions we're talking about. These folks who were laid off were more likely to develop stroke, diabetes, arthritis and heart disease.

So this really is sort of a warning out there to people. An alert. If you're laid off, take care of yourself. Take care of your health. There's a really -- unfortunately, a pretty good chance that getting laid off can make you actually sick.

NGUYEN: All right. So when they did find jobs, did they get better?

COHEN: You know what, it's interesting. They didn't get better in the way that you would think that they would. They really still suffered the lingering effects of having been laid off, because that's still stressful. And also there was some thought by the study authors that the second job wasn't quite as good as the first. That they were still sort of missing that first job that they had. So their health didn't really improve as much as you might hope.

NGUYEN: Does this really highlight the effect of stress on the body? We have it in many forms. But stress -- we've heard so much about that. You know, it can really take a physical toll.

COHEN: Right. It does take a physical toll for many reasons. One of them is that when you're under stress, hormones are sort of -- are kind of put into your body. There are these stress hormones that are kind of elicited. And, you know, stress hormones are OK.

Let's say you're driving and you are about to hit a bus, and you feel the stress and you feel the adrenaline, well, that's good. That's supposed to happen.

NGUYEN: It's a reaction -- yes.

COHEN: It's a reaction. And it's temporary. Once you get out of that accident, you're OK. Losing your job, it lingers. It goes on and on. It often -- you know, it doesn't really have an end.

NGUYEN: Talking about it just stresses me out. OK.

COHEN: Exactly. It is stressful.

NGUYEN: Thank you so much. We appreciate it.

COHEN: Thanks.

NGUYEN: You know, there is a lot going on this morning, and CNN crews are in place to bring it to you.

So let's check in beginning with Kara Finnstrom in southern California.

FINNSTROM: Well, Betty, at least 75 homes have now been damage or destroyed in a massive wildfire here. We'll have the latest on the fire fight and how families and firefighters are holding up. That's coming up in the next hour.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Cheating that way, Eppy? Eppy, I'm going to turn ever so slightly this way. Are you cheating that way?

MARCIANO: That's Susan Candiotti in Middletown, Connecticut. We'll get back to her at the top of the hour.

I'm Rob Marciano on the CNN severe weather center. A number of severe thunderstorms, some tornadoes reported on the ground in southern Missouri. We're tracking that.

Plus, the weather situation with those fires in southern California, all at the top of the hour.

NGUYEN: All right, Rob, thank you so much.

You know, we're going to look at a strange new health concern as well. Hormone creams prescribed for adults and literally rubbing off on children. And the results, well, they can be disastrous.

(COMMERCIAL BREAK)

NGUYEN: Well, Barack Obama, the candidate, promised change that you can believe in. But are gay activists still believing? Even amid the president's silence. Even mostly invisible on issues such as same-sex marriage and gays in the military. And that is causing restlessness.

CNN senior political correspondent Candy Crowley explains.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice-over): During the 100 plus days of the Obama administration...

UNIDENTIFIED FEMALE: Congratulations.

CROWLEY: ...three more states -- Iowa, Vermont, and now Maine -- have sanctioned same-sex marriage.

UNIDENTIFIED FEMALE: The legislators understood that this is about families. This is about committed couples.

CROWLEY: But nary a word from President Obama. Think 10 foot pole.

GIBBS: Well, I think the president's position on same-sex marriage is -- has been talked about and discussed.

CROWLEY: The question is, how long can the silence last?

STEVE ELMENDORF, DEMOCRATIC STRATEGIST: I think the more states that approve it, the more the pressure, though, will build on federal office holders, including the president, to take a stand at some point on gay marriage.

CROWLEY: Public support for same-sex marriage has slowly grown over the years, still the latest CNN Public Opinion Corporation poll found that 44 percent of Americans support it, while 54 percent are opposed. Broken down by party, Democrats overwhelmingly favor gay marriage, Republicans overwhelmingly oppose it, but this is what makes it politically tricky.

The majority of independents, largely the voters who decide elections, are opposed. CROWLEY: So same-sex marriage remains a political hot spot, circled carefully by most politicians, including the president. During the campaign, he said that he supported equal rights and civil unions, but same-sex marriage did not fit his definition of marriage.

BARACK H. OBAMA, PRESIDENT OF THE UNITED STATES: I believe that marriage is the union between a man and a woman.

For me as a Christian it is also a sacred union.

CROWLEY: Some in the gay community are also restless that the candidates they saw as sympathetic to their causes has seemed less so in office. He has not as promised pushed for repeals of don't ask don't tell in the military.

UNIDENTIFIED MALE: What do we want?

CROWLEY: There are complaints the president has not adequately funded AIDS prevention programs. Openly gay people have been given substantial positions in the administration, but some activists hope for a cabinet seat.

And the selection of Rick Warren, an Evangelist who opposes gay marriage, to speak at the inauguration still wrangles some in the gay community. Still there is a willingness to be patient. Washington lobbyists and democratic strategist Steve Elmendorf is gay.

ELMENDORF: No, I think people are very clear that Barack Obama is the most pro-gay president we've ever had. He's great on 90 percent of the issues that the gay community cares about. At some point they're going to hope that he changes on the 10 percent.

CROWLEY: Elmendorf adds that the majority in the gay community understand that the president has a lot on his plate right now, there is time.

Candy Crowley, CNN, Washington.

(END VIDEOTAPE)