America loses more jobs than expected in July

Despite America’s employment rate remaining unchanged, total nonfarm payroll employment fell by 131,000 in July according to the US Bureau of Labor Statistics.

The loss of 143,000 temporary hires for the 2010 census largely caused the total fall in the number of jobs. Employment in both state and local governments also fell slightly. Analysts had forecast a loss of 65,000 jobs.

However, at 9.5%, the unemployment rate remained unchanged compared with June.

Total private employment rose by 71,000 over the month, taking the total increase over the year to 630,000.  Manufacturing employment added 36,000 jobs in July, while healthcare added 27,000. (article continues below)

Jeremy Cook, the chief economist at World First, says: “While there is some job creation occurring stateside, the unemployment picture in the US is likely to stay ugly for at least the next 12 months. The Fed has to credit ease on Wednesday at their next meeting or the US recovery is all but over.”