WASHINGTON — Using better-than-expected jobs numbers to press his top domestic priority, President Obama is arguing that overhauling the health care system is essential to the country's economic well-being.

Republicans countered that the unemployment rate — 9.4 percent in July — shows how families and businesses are struggling and that Obama's reliance on a large government role in expanding health coverage is the wrong approach.

A total of 247,000 jobs were lost last month, the fewest in a year and a big improvement from the 443,000 that vanished in June.

"We've begun to put the brakes on this recession and ... the worst may be behind us," Obama said in his weekly radio and Internet address yesterday.

He cited Friday's Labor Department report that showed a dip in unemployment, but said, "We must do more than rescue our economy from this immediate crisis. We must rebuild it stronger than before." He added: "We must lay a new foundation for future growth and prosperity, and a key pillar of a new foundation is health insurance reform."

The Democratic-controlled Congress is trying to write a health care plan that meets Obama's goals of expanding coverage to millions of uninsured while reining in exploding costs.

Bob McDonnell, the Republican nominee for governor of Virginia, argued that the new Labor Department report was "yet another reminder that families and small businesses are struggling as unemployment remains high."

McDonnell sought to draw distinctions between Republicans and Democrats on economic and health care policy.

"As Republicans, we believe you create jobs by keeping taxes and regulation low, and litigation at a minimum," he said.