Obama Cautions On Jobs

WASHINGTON (AP) — President Barack Obama on Saturday tempered excitement about a growing economy with a sober outlook that more people will lose their jobs. He called that a heartbreaking reality and cautioned that even a burst of upbeat news "does not mean there won't be difficult days ahead."

Obama's straddle served to set expectations for a nation emerging from recession but anxious for an economic security that has not nearly returned.

The good news of the week: The economy is on the rise for the first time in more than a year. Fro m July through September the economy grew by 3.5 percent, the strongest uptick in two years. Obama called the development no cause for celebration, but a welcome sign after so many months of distressing news.

"While we have a long way to go before we return to prosperity, and there will undoubtedly be ups and downs along the road, it's also true that we've come a long way," Obama said in his weekly radio and Internet address. "It is easy to forget that it was only several months ago that the economy was shrinking rapidly and many economists feared another Great Depression."

Yet the economic indicator that matters most to the majority of families — stable, solid employment — is still lagging.

Unemployment hit a 26-year high of 9.8 percent in September, and the October report due in the coming week could show it topping 10 percent.

"Economic growth is no substitute for job growth," Obama said. "And we will likely see further job losses in the coming days, a fact that is both troubling for our economy and heartbreaking for the men and women who suddenly find themselves out of work. But we will not create the jobs we need unless the economy is growing."

He added, "Positive news today does not mean there won't be difficult days ahead."

Treasury Secretary Timothy Geithner says the economic recovery "could be a little choppy" and it's going to take a while. Geithner told NBC's "Meet the Press" in an interview to air Sunday that bringing back jobs and the confidence of investors will be the real test of recovery. He declined to say whether the recession is over, saying economists will figure that out years from now.

Obama's assessment came a day after the White House said the economic stimulus plan it championed has so far saved or created 1 million jobs.

Senate GOP leader Mitch McConnell of Kentucky said the administration's claim of success was "bewildering" given that many more people have lost their jobs since the $787 billion stimulus package was put in place. He said the will of the people would keep driving an economic rebound as long as Washington "doesn't shackle our growth with more taxes, more spending and more debt."