Friday, Dec 5, 2003, 3:54 pm EST

Bush Seeks to Persuade Public of Economic Rebound

BALTIMORE (Reuters) - President Bush, seeking to turn signs of a fledgling U.S. economic rebound into support from still pessimistic voters, on Friday cited job growth in November as a new sign of recovery. But analysts said the job market remained soft, and a poll this week showed the American public still waiting to feel the impact of an economy that jumped to a 8.2 percent annual growth rate in the third quarter of this year.

``The American economy is strong and it is getting stronger,` Bush said at a $1 million fundraiser in Baltimore for his 2004 re-election campaign. ``More jobs are being created.` His presidential motorcade had driven for nearly an hour through a wet snowstorm up from Washington, after the wintry weather grounded his Marine One helicopter.

The Labor Department on Friday reported that U.S. non-farm payrolls grew by 57,000 jobs in November, falling short of market expectations. A separate report showed the unemployment rate edged down to 5.9 percent last month from 6.0 percent in October.

But analysts said the job market remained stubbornly soft. This is especially true of manufacturing jobs, which fell for the 40th straight month in November.

Bush said Friday`s jobs and unemployment reports, along with gains in productivity and a strong housing market were signs that his tax cuts were working to stimulate the economy.

He is hoping an economic rebound will rob Democratic candidates of an issue in the presidential campaign. Since he took office in January 2001, 2.3 million non-farm jobs have been lost.

``The strong economic growth we`re seeing is not accompanied by any respectable employment growth,` said Anthony Karydakis, senior financial economist at Banc One Capital Markets.

Polling firm Zogby International, in a poll released this week, said 20 percent of those surveyed in mid-November were afraid they or an immediate family member would lose a job within the next year. Also, 21 percentsaid they were earning less in their current job than their previous one.

``The optimism of a rebounding economy hasn`t yet trickled down to Main Street, USA,` Zogby said.

The Public Citizen political watchdog group said Bush`s stop later on Friday at an outlet in nearby Halethorpe, Maryland, of the giant Home Depot chain appeared linked to $1.5 million in political donations it said the chain`s employees and families have given to the Bush campaign and Republican Party since 1999.

Maryland has been one of the country`s most Democratic states in recent presidential elections, voting for Democrat Al Gore by a 57-to-40 percent margin in 2000.

Source: REUTERS