Bleak Jobs Report Dampens Hopes of Steady Growth -June-03-2011--

Bleak Jobs Report Dampens Hopes of Steady Growth 

June-03-2011--A bleak jobs report suggests the recovery from the Great Recession will be longer and bumpier than many economists had envisioned.

Most economists say job growth should strengthen later this year as gasoline prices drop further and the economy recovers from the effects of natural disasters in the U.S. and abroad. But the recovery is starting to weaken 17 months before the 2012 election, which could hurt President Barack Obama's re-election 

prospects. Several chronic problems are weighing on the economy. Home prices are still falling. The average worker's pay isn't keeping up with inflation. Cutbacks in spending by state and local governments are contributing to slower growth, even in the private sector. 

And members of Congress are preparing to cut spending.

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