Promising news this week that the US is out of recession, manufacturing output is on the rise and durable goods orders were up in October 2009 was contradicted by unemployment climbing above 10% for the first time since 1983. Indeed, unemployment slowed to one-sixth the rate of January 2009 and looks like it is heading in the direction of jobs growth in early 2010.

How employment expands is really what matters. As several stimulus attempts that worked reach an end or are already over, the US government and states should do more of those things that created good jobs, especially in 21st Century, energy- and planet-saving manufacturing. The future of US economic and jobs recovery lies, in part, in manufacturing. At a time when the rules are being re-written, so can the industries that emerge. America must move from 70% of its economy driven by consumption and retail to high-demand goods that will be bought by domestic and foreign consumers and their governments.

The US government and the states have an opportunity to show leadership by choosing where to invest in manufacturing stimulus. Cash For Clunkers worked. So do more of that. Stimulate purchases of energy efficient large appliances - I’ve read where that is in the works but have seen nothing. The stimulus around energy efficiency in buildings - municipal, state and private should find a way to grow - it means jobs and lower energy costs for cash-strapped cities, towns and states. But look outside our borders.

The Chinese are pumping billions into rail transportation - compete for that market. The Scandinavians are investing in alternative fuels and geothermal technologies to heat homes and buildings. The Indians are seeking ways to improve housing for its underemployed hundreds of millions. These are but three areas where manufacturers and the public sector should collaborate to manufacture things others will buy. The weak dollar is an asset in late 2009 that can be exploited by selling US goods competitively on global markets if America is agile enough.

Investment in small enterprises as well in those “too big to fail” is necessary with an outward view of the world while the US continues to stimulate the kind of consumption that puts people to work, reduces energy consumption and aids in lowering personal and public debt.