President Obama said it is "somewhat encouraging" that new unemployment figures were lower than in past months. But the 539,000 lost jobs is a "sobering toll," and with unemployment at its highest point in a quarter-century, the administration wants to change "senseless" state compensation rules.

"The idea here is to fundamentally change our approach to unemployment in this country, so that it's no longer just a time to look for a new job, but to prepare yourself for a better job," he said. "That's what our unemployment system should be - not a safety net, but a stepping stone to a new future."

He cited a program in Maine as an example. It lets those who collect unemployment to continue doing so as they pursue further education, paid for with a Pell Grant. He said all Americans should pursue education beyond high school, and said community colleges are "underappreciated assets." Dr. Jill Biden, wife of the vice president, has been tasked with leading a national effort to "raise awareness about what we're doing to open the doors to our community colleges."

"We're moving forward because now is not a time for small plans," the president said. "It's not a time to pause, to be passive, or to wait around for our problems to fix themselves."