Obama previews jobs speech, challenges Republicans

US President Barack Obama previewed proposals on Monday for new infrastructure spending and an extension of payroll tax cuts as part of a major jobs package he will unveil this week, and challenged Republicans to find common ground with him.

Obama used a Labour Day rally with cheering union workers in economically hard-hit Detroit to set a combative tone before his nationally televised speech to Congress on Thursday, signaling he is ready to confront Republicans over their resistance to his agenda.

"We're going to see if congressional Republicans can put country before party," Obama told a campaign-style gathering of about 13,000 in a General Motors parking lot. "Show us what you got. The time for Washington games is over. The time for action is now."

Obama's jobs speech has taken on new urgency after Friday's Labor Department report, which showed zero US employment growth in August and the jobless rate stuck at 9.1 percent.

The dismal numbers stoked fears the US economy could slide back into recession and underscored for Obama, whose popularity ratings are near the lows of his presidency, that his 2012 re-election chances hinge heavily on whether he can reignite the recovery and spur job creation.

"On Thursday, we're going to lay out a new way forward on jobs to grow the economy and put more Americans back to work," Obama said in an appearance also aimed at re-energizing labor supporters who helped him win the 2008 presidential election.