Official figures show that US employers cut jobs for the sixth straight month in June. US government figures showed that the unemployment rate held steady at 5.5%.
The figures were broadly in line with expectations, but later a separate report showed an unexpected decline in the country's service sector last month.
The Labor Department said 62,000 US jobs were lost last month, bringing losses for the year so far to 438,000 as a collapse in the housing market affected growth.
The figures for April and May were revised lower, taking combined April and May US job losses to 129,000, or 52,000 more than previously thought. The sixth straight month of job losses marks the US's longest run since 2002.
Meanwhile, the Institute for Supply Management's non-manufacturing index recorded 48.2, down from 51.7 in May. Any figure below 50 means activity fell.
The report also showed that inflation pressures soared to a record high for the survey's 11-year history, while the measure of employment in the service sector also hit a record low.
The service sector represents about 80% of US economic activity, including businesses such as banks, airlines, hotels and restaurants. The services report follows an ISM report on Tuesday that showed manufacturing expanded in June for the first time in five months.
