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US jobless rate at four-year high
08/01/2008

US jobless rate at four-year high

Across the US, many firms are reluctant to hire new staff

The US unemployment rate climbed to 5.7% in July official figures show, its highest in more than four years.

Firms cut workers for a seventh month in a row, but the losses were fewer than analysts had been expecting.
 

The economy lost 51,000 non-farm jobs the US Labor Department said, the same as the newly-revised figure for June, when unemployment was at 5.5%.

Economists had been expecting about 75,000 jobs to go, but said July's data still indicated the economy was weak.
 
US companies have been reluctant to add staff amid higher oil and food prices, and slowing economic growth.
 
The only major sectors showing job creation were government, hospitality, education and health services.
 
About 22,000 jobs went in the construction sector while factories cut 35,000 jobs.
 
'Mild, long recession'
 
The Labor Department also heavily-revised figures for the previous two months.
 
It said that 47,000 jobs were cut in May instead of the 62,000 previously stated, and that 51,000 were cut in June rather than 62,000.
 
"People really thought the non-farm payrolls number (for July) was going to be bad number," said Marc Pado, a market strategist at Cantor Fitzgerald.
 
"So not only was the latest number 20-25,000 better-than-expected but the prior two months were revised up. So it's not a good number but it's not as bad as expected."
 
However, while layoffs were limited, there was no sign of firms going on a "hiring binge" either, said Brian Gendreau of ING Investment, who feared a "mild, but longer recession" than the US saw in 2001-2002.
 
"This figure might not be as weak as expected but it is still painful," he said.
 
"I don't think this will change anyone's perceptions on slow economic growth."





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