President Barack Obama let his jobs council disband Thursday as its two-year charter expired, sparking criticism among Republicans and conservative economists that the group had provided more show than substantive policy.

The jobs council was created in January 2011 as a way for business leaders—including executives from General Electric Co., American Express Co. and Boeing Co.—to advise the president on ways to boost the economy. It was a high-profile outreach effort by Mr. Obama, who has struggled to form strong working relationships...