Pelosi: U.S. Congress 'must do more' to create jobs

WASHINGTON (Reuters) - Congress needs to work harder to create jobs and economic growth to counter an unemployment rate that has hit a 26 1/2-year high of 10.2 percent, House Speaker Nancy Pelosi said on Friday.

"We must do more," Pelosi said in a statement. "Congress will continue to work every day on new and innovative approaches to expanding the job market, and do everything in our power to put Americans back to work."

Congress on Thursday approved legislation that would extend unemployment benefits by up to 20 weeks, the third time benefits have been extended since the recession began in late 2007. That bill also included tax breaks for homebuyers and businesses.

Democratic Representative Jim McDermott, who chairs a subcommittee that oversees unemployment programs, said on Thursday that Congress would have to extend benefits again before the end of the year.

Pelosi said the bank bailout and the $787 billion stimulus package approved by Congress has helped to stem job losses, and a planned overhaul of the healthcare system will also help the economy.

(Reporting by Andy Sullivan; Editing by Doina Chiacu)