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Obama Says Job Market May ’Stall’ Due to Budget Cuts

Job seekers wait to speak to a recruiter during a HIREvent job fair in San Jose, California. Photographer: David Paul Morris/Bloomberg
Job seekers wait to speak to a recruiter during a HIREvent job fair in San Jose, California. Photographer: David Paul Morris/Bloomberg

May 19 (Bloomberg) -- President Barack Obama told a group of Democratic donors in Atlanta that the economy and job market could falter as a result of the automatic spending cuts that went into effect March 1.

“Because of some policies in Washington, like the sequester, growth may end up slowing,” Obama said at a luncheon for the Democratic Senatorial Campaign Committee. “We may see once again the job market stall.”

The president was in Atlanta to give the commencement address at Morehouse College and he told the donors that while he was energized by the spirit of the graduates “they are entering into a job market that is still challenging.”

Earlier, at the commencement ceremony, Obama gave the labor market a more positive rendering. He told the graduates “you’re graduating into a job market that’s improving.”

American employers added more workers than forecast in April, sending the unemployment rate down to a four-year low of 7.5 percent. More Americans than projected filed claims for jobless benefits last week and manufacturing in the Philadelphia region unexpectedly shrank in May, signs that a slowdown in growth is rippling through the U.S. economy.

To contact the reporters on this story: Hans Nichols in Washington at hnichols2@bloomberg.net;

To contact the editor responsible for this story: Steven Komarow at skomarow1@bloomberg.net

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