President Barack Obama announces his selection of Alan Krueger, left, as chairman of the Council of Economic Advisers, Monday, Aug. 29, 2011, in the Rose Garden of the White House in Washington. (AP Photo/Carolyn Kaster)

WASHINGTON (AP) — Limited in his ability to create jobs through direct spending, President Barack Obama is considering measures to encourage the private sector to free up its cash reserves and hire more workers to ease the nation’s unemployment crush.

As Obama prepares to unveil a new jobs agenda next week, his aides are reviewing options that would provide tax incentives to employers who expand their payrolls. That approach is a more indirect effort to spur the economy and relies less on direct intervention and massive public works projects.

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