The unemployment rate in the US is at its highest level in nearly five years after a higher-than-expected 84,000 jobs were lost last month.
The jobless rate has risen to 6.1%, the highest since December 2003, adding to concern about the US economy and its ability to stave off a recession.
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The Federal Reserve said earlier this week economic activity remained "weak".
Worse than thought
The number of jobs lost last month was significantly higher than the 75,000 forecast by economists.
All sectors of the economy were affected with manufacturing worst hit, shedding 61,000 jobs.
The labour market has worsened noticeably in recent months, reflected by the fact that it is now apparent that more jobs were lost in June and July than was previously thought.
Revised figures show that in June, 100,000 jobs were lost while in July 60,000 jobs disappeared. This was up from the 51,000 figure initially forecast for both months.
Employers have now reduced their payrolls for eight straight months, with the dramatic downturn in the housing market and the credit crunch hurting all sectors of the economy.
"This is more convincing evidence that the economy is still in trouble," said Gary Thayer, senior economist at Wachovia Securities.
(BBC)
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