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US jobs drop smallest since October

US economy - Unemployment rate nears 9%
US economy - Unemployment rate nears 9%

US government figures show that the country's employers cut a smaller than expected 539,000 jobs in April. This was the smallest employment fall since October, but the Labor Department said the unemployment rate soared to 8.9%, the highest since September 1983.

March's jobs figure was revised to show a decline of 699,000, compared with a previously reported drop of 663,000. Job losses in February were bumped up to 681,000 from the previously estimated 651,000.

Analysts had forecast a drop of around 590,000 in April, though the rise in the unemployment rate was in line with expectations.

The report showed job losses across almost all sectors, although at a less steep pace than in the previous months. The government and education and health services sectors added jobs.

The manufacturing sector lost 149,000 jobs in April, after shedding 167,000 the previous month. Construction industries cut 110,000 jobs after losing 135,000 in March. The services industry slashed 269,000 positions after eliminating 381,000 in March.

Since the start of the recession in December 2007, the economy has lost 5.7 million jobs, the department said.