US employers shed 51,000 non-farm jobs in July marking a seventh month of job cuts in a row as the economy struggles for momentum, a Labor Department survey shows today.
Despite the fresh job losses, the monthly government snapshot was not as bad as feared as most economists had predicted 75,000 jobs would be lost during July.
The national unemployment rate, meanwhile, moved up to 5.7% compared with 5.5% in June, a shade higher than most forecasts.
Employers cut jobs for a seventh consecutive month as the world's largest economy continues to be buffeted by a nagging housing market slump, a widespread credit crunch and high crude oil prices.
The economic slowdown and rising fuel costs have had a big impact on major airlines and car makers who have been forced to slash costs by shedding workers this year.
June's job losses were revised down to 51,000 posts compared with an original estimate of 62,000 while May's employment cuts were notched back to 47,000 from an original tally of 62,000. A total of 463,000 jobs have been lost in the economy since the start of the year.
The year's job losses have also stacked up as big banks and finance firms have cut jobs as the housing downturn and credit squeeze have triggered investment losses.
The bleak job snapshot was released ahead of an interest rate meeting of the Federal Reserve set for next Tuesday. The central bank is widely expected to keep its federal funds rate firmly anchored at 2%.
The housing downturn continued to have a big impact on the job market during July as the construction industry shed 22,000 jobs. The manufacturing sector also showed continued signs of retrenchment as manufacturers cut 35,000 jobs and the retail industry shed 17,000 posts.
Professional and business services companies cut 24,000 jobs. Although most industries cut jobs last month, there were a few bright spots in the survey, as the education and health care sector created 39,000 new positions.
Government hiring created 25,000 new jobs while the leisure and hospitality industry added 1,000 new posts to its payrolls.
* In a separate report, the Institute for Supply Management said manufacturing activity held steady in July and noted some moderation in inflation pressures.
Its index of national factory activity slipped a bit to 50 from 50.2 in June - with 50 being the dividing line between expansion and contraction.
