"This morning we received additional signs that the worst may be behind us," said Obama in remarks in the White House Rose Garden after new figures showed the jobless rate slipped to a better than expected 9.4 percent in July.

"This morning, we received additional signs that the worst may be behind us," Obama said.

"We are losing jobs at less than half the rate we were when I took office. We have pulled the financial system back from the brink.

"While we have rescued our economy from catastrophe, we have also begun to build a new foundation for growth," Obama said, but he also warned that tough times lay ahead before the economy would be restored to full prosperity.

"We have a steep mountain to climb and we started in a very deep valley."

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