UPDATE 2-American Football-Alabama crush Notre Dame to win championship

MIAMI, Jan 7 (Reuters) - Alabama's 'Crimson Tide' swept aside Notre Dame in the BCS Championship game on Monday, dominating the 'Fighting Irish' 42-14 to win their third college football title in four years.
Notre Dame, 12-0 in the regular season, had been looking for their first national title since 1988 but were all at sea against irresistible Alabama, who set the tone of the game with an utterly one-sided 28-0 first half.
Alabama quarterback AJ McCarron threw four touchdown passes and finished with 264 yards through the air, while running back Eddie Lacy and receiver Amari Cooper had two scores each as the Crimson Tide claimed back-to-back titles.
The victory confirmed Nick Saban as the most successful active coach in college football with four national titles, taking him within two of Alabama great Bear Bryant.
The one-sided nature of a game featuring the top ranked Notre Dame will inevitably lead to further criticism of the ranking system, though a new system is to be introduced in 2014 that will see four teams battle it out for the crown at the end of the regular season.
Regardless of the system, few would argue that Alabama, beaten only by Texas A&M in the regular season, are worthy national champions - a status acknowledged before the game by Las Vegas bookmakers if not the rankings.
The matchup had been described as a return to the pinnacle of college football for Notre Dame but it ended in embarrassment for the team in shiny golden helmets, who have won 11 'consensus' national titles but endured some lean years of late.
The chance of a first title since the introduction of the BCS championship game in 1998 drew a huge Notre Dame following to Miami where they made up the bulk of the record 80,120 crowd at the Dolphins' Sun Life stadium.
PULSATING ATMOSPHERE
After marching bands had whipped up the atmosphere, it was quickly apparent that the smaller but wildly enthusiastic Alabama support would be heading home happy.
Alabama's first drive ended in a 20 yard touchdown run from the powerful Lacy, ably assisted by an imposing offensive line that swiftly establish supremacy.
McCarron then found tight-end Michael Williams with a three yard pass as Alabama took a 14-0 first quarter lead.
The second quarter saw a one yard rushing score from T.J. Yeldon and then Lacy collected a pass from McCarron and ran into the end-zone for an 11 yard score.
Alabama's power in the running game was evident in the yards put up by their two main backs - Lacy rushed for 140 yards and Yeldon 108.
Receiver Amari Cooper was left wide-open to score on a 34 yard McCarron pass in the third before Notre Dame gave their fans something to cheer with quarterback Everett Golson running the ball in from two yards out.
McCarron and Cooper combined again for a fourth quarter score before Notre Dame's Golson found Theo Riddick with a six yard pass to make the final score 42-14.
With the game already won and three minutes left on the clock, Saban sent out back-up quarterback Blake Sims and other reserves to get a taste of the glory. (Editing by Peter Rutherford)

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ING Bank may cut more costs as bad loans weigh

Dutch banking and insurance group ING said it may need to cut more costs to cope with new regulations and high provisions for bad loans, highlighting the pressures on banks to shrink their businesses.
Banks globally are facing higher capital requirements to satisfy regulators at a time when a weak economy is reducing demand for investment banking and credit services, forcing them to reduce costs by cutting operations and jobs.
Deutsche Bank in September announced a plan to cut bonuses, axe more jobs and sell assets to meet tougher capital rules, while Swiss bank UBS is cutting 10,000 jobs as it winds down its fixed-income division.
Nomura Holdings Inc , Japan's biggest brokerage, will make cuts in its equities and investment banking businesses, with its loss-making European operations taking the biggest hit.
ING, which is dismantling its banking and insurance model after needing 10 billion euros ($13 billion) of state aid in 2008, said on Monday the weak economy would continue to have an impact on operations.
"Risk costs for the bank have been increasing amid the economic downturn, and we don't foresee an immediate improvement," Chief Executive Jan Hommen said in a New Year's speech to his employees.
Risk costs are provisions for loans that are not expected to be repaid or not repaid fully because borrowers are in financial trouble or are going bankrupt.
"While we have initiated steps to reduce expenses, we are also confronted with headwinds including higher regulatory costs and the Dutch bank tax, and we must continue to align our cost structure to a leaner operating environment," Hommen said.
In November, ING announced a second round of job cuts, axing 2,350 mostly European jobs. That followed a plan in 2011 to cut 2,700 Dutch jobs to cope with deteriorating markets.
ING employed 86,881 people at the end of September.
ING shares were up 2.9 percent at 7.60 euros by 1010 GMT, in line with increases in the share prices of other European banks after regulators eased global bank liquidity rules to enable lenders to issue more credit to help struggling economies grow.

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Japan to compile 12 trillion yen extra budget: sources

TOKYO (Reuters) - Japan's government will compile a 12 trillion yen ($136.30 billion) extra budget with up to 10 trillion yen set aside for economic stimulus, several sources told Reuters on Monday.
The government will sell more than 5 trillion in new bonds to fund the budget, the sources said. The remaining funds will come from unspent money from last fiscal year's budget and money originally allocated to servicing existing debt, the sources said.

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Canada leading indicator edges up 0.1 percent in November

OTTAWA (Reuters) - The composite leading indicator for Canada rose 0.1 percent in November, slowing down from October on a housing market downturn and weak manufacturing as the economy hits a soft patch.
The index rose 0.2 percent in October and was up every month in 2012 except July, said a report on Monday by the Macdonald-Laurier Institute. The think tank developed the modified indicator last year to replace the one discontinued by the country's official statistics agency.
"The marginal gains in the leading indicator augur slow economic growth into early 2013, although the manufacturing sector turned down as uncertainty grew about the global economy," the institute said in a release.
The housing index fell 3.3 percent in November, the fifth consecutive decline as housing starts and existing home sales weakened.
In manufacturing, new orders fell 0.7 percent and the average workweek shrank by 0.3 percent.
Employment insurance claims rose for the first time in eight months in spite of strong employment data in the fourth quarter.
The stock market and commodity prices were the main areas of strength offsetting the weakness elsewhere.

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Venezuela's official statement on Chavez's health

English translation of statement read by Vice President Nicolas Maduro in Havana on Sunday about the health of President Hugo Chavez:
"The Government of the Bolivarian Republic of Venezuela fulfills its duty by informing the Venezuelan people about the course of President Hugo Chavez's medical treatment after the surgery performed in Havana, Cuba on Dec. 11.
"As is known, on December 28 we traveled to Havana on the instructions of the President Commander, and I proceed to make the following report:
"Arriving in Havana, we went immediately to the hospital to update ourselves firsthand on the situation of the Commander President's health.
"We were informed of new complications arising from the already known respiratory infection.
"Yesterday, we kept abreast of the evolution of the situation and the response to treatment. We met several times with his medical team and his closest relatives.
"A few minutes ago we were with President Chavez, we greeted each other and he himself referred to these complications.
"We had the opportunity to share with the current national situation, the successful inaugurations of Bolivarian governors in 20 departments, and the satisfactory reception of his New Year message to the Bolivarian National Armed Forces.
"In particular, Commander Chavez wanted his New Year greeting transmitted to all Venezuelan families, who are gathering together in these days along the length and breadth of the country; he especially sent a warm hug to all the boys and girls of Venezuela, reminding them that he always holds them close to his heart. The embrace was extended to all our people, so that they receive love in 2013, a year which should be of the greatest happiness for our homeland, of definitive consolidation of our independence and national unity.
"The President gave us precise instructions so that, after finishing the visit, we would tell the (Venezuelan) people about his current health condition.
"Nineteen days after his complex surgery, President Chavez's state of health continues to be delicate, with complications that are being attended to, in a process not without risks. Thanks to his physical and spiritual strength, Commander Chavez is facing this difficult situation.
"At the same time, we have decided to announce that we will stay in Havana for the next few hours, accompanying the Commander and his family, very attentive to how the current situation is evolving.
"Confident that the global outpouring of love and solidarity for Commander Chavez, along with his immense will to live and the care of the best medical specialists will help our president successfully fight this new battle.

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Venezuelans offer prayers, songs for Hugo Chavez

CARACAS, Venezuela (AP) — Venezuelans gathered on plazas and in churches to pray for President Hugo Chavez amid what seems an increasingly gloomy outlook for the ailing leader in his fight against cancer.
Following an announcement that Chavez had suffered "new complications" from a respiratory infection after undergoing cancer surgery in Cuba, people were out in the streets of Caracas on Monday talking about the leftist president's chances of surviving.
"He's history now," said Cesar Amaro, a street vendor selling newspapers and snacks at a kiosk downtown. He motioned to a daily on the rack showing side-by-side photos of Vice President Nicolas Maduro and National Assembly President Diosdado Cabello, and said politics will now turn to them.
The vendor said he expected a new election soon to replace Chavez, who won re-election in October. "For an illness like the one the president has, his days are numbered now," Amaro said.
In Bolivar Plaza in downtown Caracas, Chavez's supporters strummed guitars and read poetry in his honor on New Year's Eve. They sang along with a recording of the president belting out the national anthem.
About 300 people filled a Caracas church for a Mass to pray for Chavez.
"This country would be terrible without Chavez. He's the president of the poor," said Josefa Carvajal, a 75-year-old former maid who sat in the pews. "They say the president is very sick. I believe he's going to get better."
Chavez's aides held a Mass at the presidential palace, while government officials urged Venezuelans to keep their leader in their prayers.
Some who stood in Bolivar Plaza held pictures of Chavez. Speaking to the crowd, lawmaker Earle Herrera said that Chavez "is continuing to fight the battle he has to fight."
"He's an undefeated president, and he'll continue to be undefeated," Herrera said.
Political analyst Ricardo Sucre said the outlook for Chavez appeared grim. Noting that Maduro appeared weary during a solemn televised appearance Sunday night to announce the latest setback for Chavez, Sucre said that spoke volumes about the situation.
"Everything suggests Chavez's health situation hasn't evolved as hoped," Sucre said. He said Maduro likely remained in Havana to keep close watch on how Chavez's condition develops.
"These hours should be key to having a more definitive prognosis of Chavez's health, and as a consequence to making the corresponding political decisions according to the constitution," Sucre said.
Sucre and other Venezuelans said it seems increasingly unlikely that Chavez would be able to be sworn in as scheduled Jan. 10 for his new term.
The Venezuelan leader has not been seen or heard from since undergoing his fourth cancer-related surgery on Dec. 11, and government officials have said he might not return in time for his inauguration for a new six-year term.
If Chavez dies or is unable to continue in office, the Venezuelan Constitution says that a new election should be held within 30 days.
Before his operation, Chavez acknowledged he faced risks and designated Maduro as his successor, telling supporters they should vote for the vice president if a new presidential election were necessary.
Chavez said at the time that his cancer had come back despite previous surgeries, chemotherapy and radiation treatment. He has been fighting an undisclosed type of pelvic cancer since June 2011.
"The situation does not look good," said David Smilde, a University of Georgia sociologist and analyst for the Washington Office on Latin America think tank.
"Mentioning twice in his nationally televised speech that Chavez has suffered new complications only reinforces the appearance that the situation is serious," he added.
Smilde said Maduro probably made the trip "to be able to talk to Chavez himself and perhaps to talk to the Castros and other Cuban advisers about how to navigate the possibility of Chavez not being able to be sworn in on Jan. 10."
Medical experts say that it's common for patients who have undergone major surgeries to suffer respiratory infections and that how a patient fares can vary widely from a quick recovery in a couple of days to a fight for life on a respirator.
On the streets of Caracas, images of Chavez smiling and saluting are emblazoned on campaign signs and murals. One newly painted mural reads: "Be strong, Chavez."
Venezuelans rang in the New Year as usual with fireworks raining down all over the capital of Caracas. But one government-organized outdoor party that had been scheduled in Bolivar Plaza with a lineup of Venezuela bands was canceled due to Chavez's precarious condition.
State television played video of Chavez campaigning for re-election, including a speech when he shouted: "I am a nation!"
A new government sign atop a high-rise apartment complex reads: "YOU ALSO ARE CHAVEZ."
Norelys Araque, who was selling holiday cakes on a sidewalk Monday, said she has been praying for Chavez. But, she added, "I don't think he will last long."
Araque said that her family has benefited from state-run subsidized food markets and education programs started by Chavez, and that she hopes the government carries on with the president's programs if he doesn't survive.
Chavez has been in office since 1999 and was re-elected in October, three months after he had announced that his latest tests showed he was cancer-free.
Opposition politicians have criticized a lack of detailed information about Chavez's condition, and last week repeated their demands for a full medical report.
Chavez's son-in-law Jorge Arreaza, who is the government's science minister and has been with the president in Cuba, urged Venezuelans in a Twitter message Monday night not to believe "bad-intentioned rumors" circulating online. "President Chavez has spent the day calm and stable, accompanied by his children," Arreaza said in the message.

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Venezuelans take in shifting news on Chavez health

CARACAS, Venezuela (AP) — Venezuelans began 2013 with a respite from shifting news about the health of President Hugo Chavez, who hasn't been seen in public since his fourth cancer-related surgery three weeks ago.
The country was largely peaceful Tuesday after a New Year's Eve that saw a main government-organized celebration canceled due to Chavez's illness.
Jorge Rodriguez, a Chavez ally and mayor of a Caracas district, reiterated that the president is going through a "complex post-operative process."
He told reporters Tuesday that Venezuelans have shown an outpouring of compassion and support for a leader who has "been planted in the hearts of millions." Rodriguez urged Venezuelans to keep Chavez in their prayers and expressed hope the president would recover.
Chavez's son-in-law Jorge Arreaza, who is the government's science minister and has been with the president in Cuba, urged Venezuelans in a Twitter message Monday night not to believe "bad-intentioned rumors" circulating online. "President Chavez has spent the day calm and stable, accompanied by his children," Arreaza said in the message.
That followed a grim announcement from Vice President Nicolas Maduro on Sunday that the president had suffered new complications due to a respiratory infection that appeared after the surgery.
Bolivian President Evo Morales issued a New Year Eve greeting to Chavez lamenting the health problems plaguing his "anti-imperialist comrade."
Morales said he was sending wishes for "strength, energy, and for him to be able to recover soon." Morales made a visit to Havana last week to visit Chavez, but didn't refer to that trip.
In Bolivar Plaza in downtown Caracas, Chavez's supporters strummed guitars and read poetry in his honor on Monday night, singing along with a recording of the president belting out the national anthem.
About 300 people also filled a Caracas church for a Mass to pray for Chavez.
"This country would be terrible without Chavez. He's the president of the poor," said Josefa Carvajal, a 75-year-old former maid who sat in the pews. "They say the president is very sick. I believe he's going to get better."
Chavez's aides held a Mass as well, at the presidential palace, while government officials urged Venezuelans to keep their leader in their prayers.
Venezuelans rang in the New Year as usual with fireworks raining down all over the capital of Caracas. But some of Chavez's supporters had long faces as they gathered in Bolivar Plaza on Monday night holding pictures of the president. A government-sponsored celebration there had been called off.
Speaking to the crowd, lawmaker Earle Herrera said Chavez "is continuing to fight the battle he has to fight."
"He's an undefeated president, and he'll continue to be undefeated," Herrera said.
Political analyst Ricardo Sucre said the outlook for Chavez appeared dark. Sucre noted that Maduro appeared weary during a solemn televised appearance Sunday to announce the latest setback for Chavez.
"Everything suggests Chavez's health situation hasn't evolved as hoped," Sucre said. He said Maduro likely remained in Havana to keep close watch on how Chavez's condition develops.
"These hours should be key to having a more definitive prognosis of Chavez's health, and as a consequence to making the corresponding political decisions according to the constitution," Sucre said.
Sucre and other Venezuelans said it seems increasingly unlikely that Chavez would be able to be sworn in as scheduled Jan. 10 for his new term. The Venezuelan leader has not been seen or heard from since undergoing the Dec. 11 operation.
If Chavez dies or is unable to continue in office, the Venezuelan Constitution says a new election should be held within 30 days.
Before his operation, Chavez acknowledged he faced risks and designated Maduro as his successor, telling supporters they should vote for the vice president if a new presidential election was necessary.
Chavez said at the time that his cancer had come back despite previous surgeries, chemotherapy and radiation treatment. He has been fighting an undisclosed type of pelvic cancer since June 2011.
Medical experts say it's common for patients who have undergone major surgeries to suffer respiratory infections and that how a patient fares can vary widely from a quick recovery in a couple of days to a fight for life on a respirator.
On the streets of Caracas, images of Chavez smiling and saluting were emblazoned on campaign signs and murals. One newly painted mural read: "Be strong, Chavez."
State television played video of Chavez campaigning for re-election, including one of the president shouting: "I am a nation!"
A new government sign atop a high-rise apartment complex reads: "YOU ALSO ARE CHAVEZ."
Norelys Araque, who was selling holiday cakes on a sidewalk Monday, said she has been praying for Chavez. But, she added, "I don't think he will last long."
Araque said her family has benefited from state-run subsidized food markets and education programs started by Chavez, and that she hopes the government carries on with the president's programs if he doesn't survive.
Chavez has been in office since 1999 and was re-elected in October, three months after he had announced that his latest tests showed he was cancer-free.
Opposition politicians have criticized the government for not providing information about Chavez's condition, and last week repeated their demands for a full medical report.

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Private equity pours money into India primary healthcare

MUMBAI (Reuters) - Private equity funds quadrupled their investment in India's primary healthcare, betting the sick and ailing will stop seeing family doctors in often cramped and dingy quarters and check into modern chains sprouting up across Asia's No.3 economy.
Goldman Sachs Group Inc, Warburg Pincus LLC, Sequoia Capital and the Government of Singapore Investment Corp are among investors that pumped $520 million into India's basic healthcare industry this year, compared with $137 million in 2011, according to Thomson Reuters data. Some analysts predict investment will surpass $1 billion in 2013.
Organized healthcare providers including Apollo Hospitals Enterprise Ltd and Fortis Healthcare Ltd are betting that growing numbers of patients will be willing to pay two or three times more for better-equipped clinics - all under a model that can be replicated fast and offers investors the potential for quick returns.
"The family doctor concept is slowly phasing out as migrants in cities look out for a brand rather than visiting a general physician next door," said Santanu Chattopadhyay, CEO of NationWide Primary Healthcare Services, in which U.S.-based Norwest Venture Partners has invested $4.6 million.
The opportunity is vast: India's unorganized primary healthcare system is worth $30 billion and is growing at least 25 percent a year. The challenge will be convincing the sick to give up their trusted family doctors.
The country's primary healthcare sector will draw at least $1 billion annually in private equity investment over the next couple of years, said Shantanu Deb Mookerjea, executive director at Mumbai-based advisory firm LSI Financial Services.
"Single-specialty chains and diagnostic laboratories will be the game changer," he said, adding that they are easy to set up and expand to suit demand.
Another attraction is that primary healthcare providers such as outpatient clinics and diagnostic centers are not capital-intensive, so investors don't have to write out big checks.
Also, unlike many restrictive Indian industries, from insurance to real estate and telecoms, there are no limits on foreign ownership in healthcare.
THINK LIKE RESTAURANTS
Healthcare, like restaurant chains, is a play on rising spending power in India, although valuations tend to be lower than the retail sector. Investors pay single-digit multiples on price-to-earnings in primary healthcare, compared with 15 to 18 for food and other consumer chains.
Valuations could improve if private healthcare operators also adopted a restaurant franchise model.
Under such a model, a healthcare operator would allow a franchisee to use its brand and provide expertise and support in exchange for a fee. The franchisor would avoid forking out money to set up new clinics - investments that will be borne by the franchisee.
"We would prefer to value our company based on our franchisee consumer model like a pizza (chain) rather than as a pill made by a drugmaker," said Atul Bhide, director of finance at Mumbai-based Vaidya Sane Ayurved Laboratories, which operates 160 clinics providing traditional ayurvedic treatment.
As a result, healthcare has been a rare bright spot for private equity in India, where overall investment fell 17 percent this year to about to $3.3 billion.
"From small hospital chains and specialized treatment facilities, we are witnessing increased institutionalized activity, which could attract a lot of institutional investment interest," said Vishakha Mulye, CEO of ICICI Venture, the private equity arm of ICICI Bank Ltd.
Last year, Mulye's fund sold its stake in diagnostic chain Metropolis Healthcare to Warburg Pincus for 3.92 billion rupees ($72 million), a 10-fold return on its 350-million-rupee investment in 2006.
CONVINCING PATIENTS
The biggest challenge will be convincing patients such as Chandrashekhar Khandke, a 30-year-old software professional at IBM in the western city of Pune, who said he has visited modern clinics a few times but still prefers his family doctor.
"If I buy grains from a grocery store or from a supermarket, it doesn't make much of a difference but when it comes to health, a family doctor matters a lot," he said.
Overcoming the draw of a trusted doctor may prove harder than it seems, even in a country where healthcare infrastructure is poor, electronic medical records are rare, and the quality of doctors and other medical professionals is patchy.
"Although branded clinics have potential, they find it tough to pull patients from a strong local doctor. Also, if there is a big hospital in the vicinity, then they lose out on patients," said Deepak Malik, analyst at Mumbai-based brokerage Emkay Global Financial Services Ltd.
While fees at modern clinics range from 150 to 600 rupees for treatment of routine illness, sole general practitioners charge patients anything between 50 and 300 rupees per visit.
"While these chains have a unique brand, a trusted doctor is even a bigger brand," said Anil Advani, a doctor who operates an old but modest 800-square-foot (75-square-metre) clinic in Thane, outside Mumbai.

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Fed's Plosser sees lasting blow to potential growth rate

SAN DIEGO (Reuters) - The United States economy likely suffered a lasting decline in its trend potential growth rate as a result of the severe 2007-2009 U.S. recession, a top official of the Federal Reserve said on Friday.
"Any of you who have looked at the data of the most recent ... recession, it certainly looks like we've had a permanent shock," Charles Plosser, president of the Philadelphia Federal Reserve Bank, told a panel at the annual meeting of the American Economic Association. "The problem is we won't know the answer to that for many years to come."
Fed Chairman Ben Bernanke also recently voiced the possibility that the harm done by the recession might have trimmed the United States' growth potential, which gauges how fast the economy can grow over time without hitting inflationary speed bumps.
Plosser is one of the more hawkish members of the Fed's policy-setting committee and has warned about the inflation risks posed by the U.S. central bank's current aggressive policy to spur the country's growth.
Hawks warn a decline in the rate of U.S. trend potential growth means the Fed ought be careful in trying to push the economy to grow much faster, although some economists say that the dip may only be temporary.
"If it is not permanent, it is very persistent," Plosser told reporters on the sidelines of the meeting, adding, "That has consequences for ... monetary policies' ability to do something about the shock."
The Fed last month voted to maintain mortgage-backed and Treasury bond purchases at an $85 billion monthly pace and to keep expanding its balance sheet via these quantitative easing measures until there is a substantial improvement in the outlook for the labor market.
The Labor Department on Friday reported that U.S. unemployment remained stuck at 7.8 percent in December. The Fed has committed to hold interest rates near zero until unemployment declines to 6.5 percent, provided inflation remains beneath 2.5 percent.
Plosser, who expects unemployment to drop to between 6.8 percent and 7.0 percent by end-2013, said he hoped the Fed would stop buying bonds before the 6.5 percent threshold, implying he anticipated the asset purchases would halt this year.
A danger of guessing wrong about trend growth is that it would throw off estimates about the size of the U.S. output gap, which is used to describe the amount of slack in the economy, and how much faster it can grow without sparking inflation.
The Fed's latest quarterly summary of policymakers' economic projections was for trend growth of 2.3 percent to 2.5 percent, unchanged from their estimate in September.
"One of the reasons we made the mistakes we made in the 1970s...was they mis-estimated the gap. Potential was a lot lower than they thought it was," Plosser said, referring to the period when the Fed accommodated a massive rise in inflation.
One reason that trend growth had slowed, he said, was the collapse of the housing bubble, which destroyed massive levels of U.S. wealth that families are now trying to restore by saving more, dampening their spending.

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U.S. public schools cut 11,000 jobs in December

WASHINGTON (Reuters) - Local U.S. governments cut jobs for the fourth straight month in December, including 11,000 in public schools, dragging down the nation's fragile economic recovery, jobs data showed on Friday.

Local government jobs are now at their lowest level since October 2005, with the bulk of the decline coming from layoffs of teachers and other school employees, according to the Labor Department.

For more than a year, persistent declines in public sector employment - particularly at the city, county and school district level - have stood in contrast to steady job gains in the private sector.

Jan Eberly, the U.S. Treasury assistant secretary for economic policy, said recent improvements in state budgets may start to reverse some of the declines next year.

"There is some expectation that state and local budgets will start to improve as the economy is picking up, and we're seeing improvements in many states, though not in all states," Eberly told reporters on Friday.

Overall government employment in the United States fell by 13,000 last month, the Labor Department said. Those jobs were almost all lost in public schools. Local governments shed 11,000 school jobs, and local agencies outside of schools had 2,200 more job losses.

State governments, meanwhile, added 4,000 jobs while federal government jobs fell by 3,000 in December, according to the report.

State and local government spending grew at a 0.3 percent annual rate in the third quarter, after 11 straight quarters of contraction, the Commerce Department reported last month. But many states, cities and counties are planning to keep spending flat as they continue to face uncertainty about federal funding levels and revenues.

Since August 2008, local governments have shed some 300,000 teaching and other school jobs, raising fears the layoffs could hurt students' education. Typically, schools try to avoid cutting jobs in the middle of the school year, and make most of their staffing changes in the summer.

The figures are also a worrisome sign that local budgets are still stuck in a slump. State governments have added 24,000 jobs since last December, but local governments have cut more than double that number in the past year.

The 2009 federal economic stimulus measure helped offset states' budget gaps resulting from the recession. But with the money now gone, state aid squeezed and tax revenues low, states have chipped away at their public safety and education workforces.

"(We) remain hopeful that President (Barack) Obama and the 113th Congress, as well as governors, will prioritize our students and public education and work hard to stave off further cuts," said Dennis Van Roekel, the president of the National Education Association, the largest U.S. teachers' union.

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