A total of 114,000 jobs were lost in the US economy in June and the unemployment rate rose 0.1% to 4.5%, the US Labour Department said on Friday.
Analysts had been forecasting a rate of 4.6% and the loss of 50,000 jobs.
The report also said hourly earnings rose 0.3% in June and were up 4.2% year-on-year. This was in line with the consensus forecast.
The sharp decline in manufacturing employment was the major factor in the payroll decline, according to the Bureau of Labour Statistics.
'In June, job losses in manufacturing continued to be steep and widespread,' said Katharine Abraham, commissioner of the Bureau. Manufacturing jobs fell by 113,000 in June.