I would do a couple of things. First, I might be sure I was giving him a little more hind-end support than that picture seems to indicate. Holding him more securely may make him more comfortable.
Also, be sure you're not just suddenly grabbing him and scooping him into the air. Pick him up gently and slowly, so he isn't surprised.
It does sound like he's mostly just expecting bad things to happen when you pick him up though, so what I'd do is just pick him up several times a day, give him a treat once he's stopped growling, and put him down. Try to avoid picking him up for unpleasant things during the first couple of weeks you do this (but if you have to do so, it's not a big deal, just might slow things down). It's just counter-conditioning really. You're teaching him that 99% of the time, being picked up is a good thing.
I also agree that this is one of those things that you should train your dog to accept. I'm surprised some people never pick up their dogs. I have dogs who don't care for it and so (now that I've trained them to tolerate it) I only do it when absolutely necessary, but there are times in most dogs' lives when it will be useful or even critically important to be able to carry them. I'm thinking of when one of my dogs was hit by a car and still very alert but unable to walk due to two injured legs--not sure what I would have done if he wouldn't let me carry him.