Blur Tool

The Blur Tool unfocuses image areas:
  • In the Toolbox, select the Blur Tool.
  • Choose brush size and style.
  • Set the tool's strength.
  • Drag on the image.
  • In the Options bar, you can also specify the effect's "Mode".

Tip. Just in case you didn't know, the Blur tool is also available in Photoshop Elements that is way cheaper version.

And if you believe, Photoshop Elements lacks some other important feature, be sure to visit this page.