Reid and Pelosi Meet with Obama on Jobs and Economy

House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid met with President Obama Wednesday to discuss job creation and the economy following last week's report that the unemployment rate had climbed to a 26-year high of 9.8 percent.

The Obama administration has begun talks with Democratic leaders in Congress on moves to extend health insurance subsidies, the $8,000 first-time homebuyer tax credit and jobless benefits, congressional and administration officials told FOX News late last week.

"Today's meeting with the President reinforces our shared commitment to creating more jobs and providing relief to the millions of Americans who are out of work," Reid said in a written statement.

"President Obama inherited the worst economic crisis in generations and has brought our nation back from the brink," he added. "But too many families are still hurting, and it's critical that we do everything possible to create jobs and strengthen the economy.

Reid said he is optimistic about the prospects of using renewable energy legislation to create green jobs and improving the housing market by keeping more families on the verge of foreclosure in their homes.

"We also need to think about creative, innovative ways to encourage businesses to create new jobs and we're committed to working with the President to do that," he said.

One idea that is gaining traction on Capitol Hill and is being examined by the White House is offering a tax credit to companies that create new jobs, a move the federal government last tried in the 1970s.

Pressure is mounting on the White House to get a handle on rising unemployment as Republicans use the grim figures to attack Democrats for their support of Obama's $787 billion stimulus package ahead of next year's elections.