SCHNECKSVILLE, Pa. -- Surprisingly good news on the employment front afforded President Barack Obama the chance to crow about his administration's achievements during a visit to the Lehigh Valley yesterday.

"The unemployment rate ticked down instead of up," Mr. Obama told a crowd of 500 at Lehigh Carbon Community College's Berrier Hall Gymnasium. "The trend line right now is good. The direction is clear."

Unemployment dipped to 10 percent last month, down from 10.2 percent in October. Still, 15.4 million people are unemployed and another 11.5 million are either underemployed or have given up the job hunt, according to labor statistics released yesterday.

"Even though our economy is growing again, a lot of companies are hesitant to hire," Mr. Obama said. "Some of this is because they're still trying to get out of the red, because they're still seeing consumers pull back because they got overextended on their credit cards" and because companies have figured out how to be more productive with fewer people.

One student in the audience had his own idea for economic improvement. During a brief question-and-answer session, the unidentified sophomore asked whether the president would legalize drugs, prostitution and gambling to stimulate the economy.

"That will not be my job strategy. But let me say this: Part of what you're supposed to do in college is question conventional wisdom, and you're doing exactly what you're supposed to do," Mr. Obama said.

The president said his strategy is to build a new economy on clean-energy technology such as wind turbines and solar panels.

Second, he wants to reign in health care costs and help banks find middle ground in terms of lending practices.

Initially, he said, banks gave credit too freely to people that didn't have the means to repay loans. Now they're withholding loans from credit-worthy businesses, he said.

"Part of our message to banks is this: The taxpayers were there for you to clean up your mistakes. You now have a responsibility to be there for the community," Mr. Obama said. "If there's a manufacturer in Pennsylvania, if there's a business in Ohio that has a good idea, that has a customer base, give them a loan on fair terms."

His message hit the right notes for Sharon Dickinson of Allentown, who has been unable to find work -- or affordable health insurance -- since February, when she was laid off from her job as a purchasing clerk at a local memory-foam manufacturing company.

She had a chance to speak briefly with the president as he walked through the crowd after his remarks.

"I said, 'Mr. President, I'm one of the people you're talking about here. I'm the person you've been trying to get the jobs for and trying to get health care for,'" Ms. Dickinson, 52, recalled later. "It's an uphill battle, but what he's doing is going to help people like me."

She was disappointed that Mr. Obama took only four questions from the audience. The White House had billed the event as a chance to speak to community members about their experiences in this economy and their ideas about job creation.

Suparna Damany, 42, said she appreciated the president's concern about reigning in health care costs and improving access to insurance.

As a physical therapist and small business owner, she is being squeezed from both sides -- paying more for her employees' benefits and receiving lower insurance reimbursements for the patients she treats.

Also yesterday, Mr. Obama strolled through Allentown Metal Works, where he talked with workers about the industry and the company's prospects. The facility, once a Mack Truck factory, dates back more than 100 years and now employs about 65, down from as many as 100. Surrounded by massive cylindrical chunks of steel, the president made small talk with floor workers.

Later joined by Allentown Mayor Ed Pawlowski and several small-business owners, he sampled a cheeseburger at the Hamilton Family Restaurant.

In the afternoon, he shook hands with workers at the nearby Nestle Purina Petcare plant and visited Lehigh Valley Careerlink, where he posed for a photo with job seekers and told them the country needs to focus on industries where it has a technology advantage, such as clean energy.

Rob Gleason, chairman of the Republican Party of Pennsylvania, said the president should spend less time creating photo opportunities and more time fixing the economy.

"If he's truly interested in job creation, he should put an end to his public-relations presidency," Mr. Gleason said in a joint teleconference with former Lehigh Valley Congressman Pat Toomey, who is running for U.S. Senate.

Mr. Toomey said Mr. Obama's economic stimulus plan is not working and should be revoked. Instead, the president should focus on cutting payroll taxes to make it easier for employers to expand their businesses and hire more people.

Still, he said, he was "delighted" that Mr. Obama visited the region he represented for six years in Congress.

"It's great to have a sitting president visiting the Lehigh Valley, and I'm glad Pennsylvania is high enough on his priority list that he would start his tour off here," Mr. Toomey said.

The trip marked Mr. Obama's first public excursion outside Washington since announcing he would double the number of American troops in Afghanistan. The president's aim was to promote his ideas for job growth and economic recovery.

The blue-collar region greeted the presidential motorcade with a mix of welcome signs, insults and communist symbols such as the hammer and sickle displayed along Route 309, the main access road to the college.

The Schnecksville Diner posted a "Welcome President Obama" sign out front. Across the street, a few dozen protesters gathered to send their own message: Stop spending our money.

"He has to stop spending. It's just a shame what he's doing to our grandkids," said Gary Cribbs, 62, who grew up in Vandergrift and now lives in Cumberland County. "Some of the things he's done might be OK and might be right, but I can't really think of any offhand."

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