WASHINGTON --- President 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."

Mr. 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 week's good news is that the U.S. economy is on the rise for the first time in more than a year. From July through September the economy grew by 3.5 percent, the strongest uptick in two years. Mr. 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," Mr. Obama said in his weekly radio and Internet address.

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," Mr. 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."

Mr. 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 Republican 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.

The White House's figures are pegged to an independent federal board's report that nearly 650,000 direct jobs have been saved or created because of stimulus program money.

The 1 million jobs cited by Mr. Obama also includes those from direct economic assistance, plus those linked to the tax cuts under the stimulus program, the White House says.