U.S. President Barack Obama welcomed a Labor Department report Thursday that suggests the pace of job losses is slowing. But with the nation's unemployment rate at 10.2 percent, the president is asking business leaders and economic experts to come up with new ideas on how to create jobs.

Sonja Jackson, of Detroit, holds a Employment Guide standing in line while attending a job fair in Livonia, Michigan, 04 Nov 2009With the unemployment rate at a 26-year high, President Obama announced plans to host a jobs forum next month at the White House.  

"We'll gather CEOs and small business owners, economists and financial experts, as well as representatives from labor unions and non-profit groups, to talk about how we can work together to create jobs and get this economy moving again," Mr. Obama said.

Speaking to reporters before leaving on his first trip to Asia as president, Mr. Obama called a Labor Department report showing a better than expected drop in weekly jobless claims - "a hopeful sign". But he says the improved economic picture has yet to translate into job growth.

"Small businesses and large firms are demanding more of their employees. They're increasing their hours, and adding temporary workers, but these companies have not yet been willing to take the steps necessary to hire again," Mr. Obama states.

That reluctance to hire new workers remains one of the administration's biggest challenges. The president says he's open to new ideas. "It's through these steps with our partners that we will not only revive our economy in the short term, but rebuild it stronger in the long term," he said.

Job growth tends to lag behind other indicators, but there are signs the worst recession in decades may be over.

The Commerce Department says the U.S. economy grew in the third quarter. And a new report shows home foreclosures fell for a third straight month while home sales continued to rise.