UPDATE 1-US infrastructure deal could come this year-LaHood

* Congress feeling enormous pressure over jobs - LaHood

* Says deal must be struck before 2012 due to elections

By John Crawley

WASHINGTON, Oct 13 (Reuters) - A sour economy and the approaching 2012 U.S. elections could prompt lawmakers to strike a deal on infrastructure spending by year's end, Transportation Secretary Ray LaHood said on Thursday.

"It has to be done now," LaHood told Reuters on the sidelines of a National Press Club speech on transportation priorities.

Promoting President Barack Obama's proposals for job creation that includes new spending for road, bridge and rail work, LaHood said lawmakers drafting related legislation are feeling enormous pressure at home over joblessness.

"I think we'll get an infrastructure program and I believe it will happen by the end of the calendar year," he said.

"The economy is so bad and so many are out of work that I just believe the pressure is going to build," LaHood said.

U.S. unemployment was at 9.1 percent, or 14 million people in September. But the jobless rate is higher in certain industries, like construction, and in certain regions, like the West.

LaHood also said a deal needs to come together within the next 2 1/2 months because 2012 "will be all about the election" - not wrangling over legislative initiatives.

Obama's $447 billion jobs bill was defeated in the Senate earlier this week, opposed by Republicans and a handful of Democrats.

Separately, House leaders are contemplating a six-year road, rail and transit construction bill, while the Senate is working on a two-year plan.

The U.S. government spends $42 billion annually on infrastructure upgrades, sending that money to states as reimbursement for construction work.

Transportation construction programs have been kept alive since 2009 by short-term funding the extensions. The current one expires in March.

LaHood holds a prominent place in Obama's Cabinet as a Republican and is influential on legislative matters as a former member of Congress.

He said separately on Thursday that he plans to leave the transportation post after the election for the private sector even if Obama is returned to office.