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WORLD> America
US jobless rate rises to 4-year high of 5.7%
(Agencies)
Updated: 2008-08-01 22:05

WASHINGTON - The nation's unemployment rate climbed to a four-year high of 5.7 percent in July as employers cut 51,000 jobs, dashing the hopes of an influx of young people looking for summer work.


Jobs brochures on display at a state unemployment office in Sunnyvale, Calif., Wednesday, July 30, 2008.[Agencies]

Payroll cuts weren't as deep as the 72,000 predicted by economists, however. And, job losses for both May and June were smaller than previously reported.

July's reductions marked the seventh straight month where employers eliminated jobs. The economy has lost a total of 463,00 jobs so far this year.

The latest snapshot, released by the Labor Department on Friday, showed a lack of credit has stunted employers' expansion plans and willingness to hire. Fallout from the housing slump and high energy prices also are weighing on employers.

The increase in the unemployment rate to 5.7 percent, from 5.5 percent in June, in part came as many young people streamed into the labor market looking for summer jobs. This year, fewer of them were able to find work, the government said. The unemployment rate for teenagers jumped to 20.3 percent, the highest since late 1992.

Wall Street initially found reason for optimism in the report, but news that General Motors Corp. had a $15.5 billion loss in the second quarter weighed on investors. Shares were mixed in early trading.

Related readings:
 US home sales at 10-year low, jobless claims jump
 US jobless rate jumps to 5.5%
 US growth revised higher, jobless claims up
 Jobless claims hit 2-year high in US

The economy is the top concern of voters and will figure prominently in their choices for president and other elected officials come November. The faltering labor market is a source of anxiety not only for those looking for work but also for those worried about keeping their jobs during uncertain times.

Job losses in July were the heaviest in industries hard hit by the housing, credit and financial debacles. Manufacturers cut 35,000 positions, construction companies got rid of 22,000 and retailers shed 17,000 jobs. Temporary help firms - also viewed as a barometer of demand for future hiring - eliminated 29,000 jobs. Those losses swamped job gains elsewhere, including in the government, education and health care.

In May and June combined, the economy lost 98,000 jobs, according to revised figures. That wasn't as bad as the 124,000 reductions previously reported.

GM, Chrysler LLC, Wachovia Corp., Cox Enterprises Inc. and Pfizer are among the companies that have announced job cuts in July.

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