This is a RUSH transcript from "The O'Reilly Factor," July 6, 2012. This copy may not be in its final form and may be updated.

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LAURA INGRAHAM, HOST: No "Talking Points" memo as we have to get right to the "Top Story". And I'm talking devastating jobs numbers for President Obama and for the country. The unemployment rate remained at a whopping 8.2 percent with only 80,000 jobs added; well under estimates from leading economists.

Mitt Romney pounced on the news.

(BEGIN VIDEO CLIP)

ROMNEY: We have seen the jobs report this morning and it is another kick in the guts to middle class families. It's consistent with what I have heard as I have gone across the country and met with families in their homes, in cafes and restaurants and in break rooms. American families are struggling.

(END VIDEO CLIP)

INGRAHAM: But somehow President Obama put a positive spin on it remaining optimistic about the economy and by extension his chances to be re-elected.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We learned this morning that our business has created 84,000 new jobs last month. And that overall means that businesses have created 4.4 million new jobs over the past 28 months including 500,000 new manufacturing jobs. That's a step in the right direction.

(END VIDEO CLIP)

INGRAHAM: Joining us now from New York David Callahan. He's a senior fellow at Demos a progressive organization and Elaine Chao the Former Labor Secretary under President George W. Bush.

Ok, David, I'm going to let you take a swing at this right off the bat. Because when I saw these numbers came -- come down, I thought to myself, wait a second. It wasn't too long ago when I believe it was Senator Obama complaining that George W. Bush thought 200,000 or 300,000 jobs added was a good number. This is 80,000 jobs. This cannot be spun as good news for Americans.

DAVID CALLAHAN, PH.D., SENIOR FELLOW, DEMOS: It's not good news for America. Let's recall though that Obama made that complaint before we suffered the biggest financial crisis in American history, you know, after the -- the Wall Street crash of 1929; we lost nine million jobs as a result of that crisis.

When Obama took office we were hemorrhaging 700,000 jobs a month. Unemployment hit 10 percent. So in many ways we've come a long way. We haven't lost any jobs in the last two years. We are making progress, clearly not enough progress. In retrospect that stimulus was not nearly big enough in 2009. And that American Jobs Act --

(CROSSTALK)

INGRAHAM: So that -- yes.

CALLAHAN: -- that President Obama tried to pass last September should have been enacted by Congress which did nothing. So we're now paying the price for that.

INGRAHAM: But David as far as can I tell and Elaine you can get in on this as well.

ELAINE CHAO, FORMER LABOR SECRETARY: Yes.

INGRAHAM: As far as I can tell, the President blame shifts a lot. I mean, I really did not hear any evidence that the President is taking any responsibility for this economy. It's either Europe's fault, the banking industry's fault, Republican's fault or maybe Fox News' fault but it's almost never his fault.

CHAO: And don't forget the tsunami also.

INGRAHAM: Go ahead. Go ahead Elaine.

CHAO: Don't forget the tsunami too.

INGRAHAM: Yes well it's all -- or natural disaster or wildfires or global. I don't know what -- you know what --

(CROSSTALK)

CHAO: I think clearly --

(CROSSTALK)

INGRAHAM: -- but the point of the matter is people want a leader to take responsibility for the good and for the not so good. And I think this is -- this act is beginning to wear thin in my opinion, Elaine.

CHAO: I think you know three and a half years into his administration, I mean it is now his economy.

And yes, he may have inherited a bad economy and even if he did, I think the key word is he made it worse. The unemployment rate is up 8.2 percent. The average unemployment rate from the years 2001 to 2008 was 5.2 percent. The number of people participating, working in our economy is at an all-time low.

The labor participation rate is about 63.8 percent. Again, if you look back at 2001 to 2008, the average labor participation rate was about 67 percent. So with the workforce of about 155 million people, those four percentage points in terms of labor participation rate alone means that there are many, many Americans who have just grown discouraged. They have withdrawn from the workforce and they are not looking.

In fact we have over 12.7 million Americans who are still out of work.

INGRAHAM: Elaine -- Elaine these -- these numbers are dreadful I believe across the board.

CHAO: Yes.

INGRAHAM: And there's very little positive news to glean from these. Nevertheless, a number of conservatives have come forward and are a bit concerned that in tone and in enthusiasm, we seem to be missing something in the Romney campaign. Did you think that when he came forward today for a brief appearance that that was enough? That that was sufficient to kind of get people to stand with him for his positive solutions?

CHAO: You know, Governor Romney has a history of creating jobs and I think people understand that and I think we've got to focus on it. He is a job creator. He has created jobs, he have had companies that have created jobs. And his record speaks for itself. And I think that's the point that -- that's going to be very appealing.

Now all of us want the economy to improve. Now we don't want our fellow Americans to be suffering. But clearly something is not working. This economy is stuck and they are just, you know, business people, employers are concerned about all sorts of things.

(CROSSTALK)