The U.S. economy shed more jobs than expected in July while the unemployment rate held steady at 9.5%, a further sign the economic recovery may be losing momentum.
Only 71,000 private-sector jobs were added last month while 143,000 temporary workers on the 2010 census were let go.
Economists polled by Dow Jones Newswires were expecting total nonfarm payrolls to drop by a smaller 60,000 in July.
The June data were revised down significantly. Payrolls fell 221,000 that month, more than the 125,000 drop previously reported, as only 31,000 jobs were added in the private sector.
Taking into account revisions to prior months this year, the U.S. economy added an average of less than 100,000 jobs a month in the first seven months of 2010, a level that isn’t strong enough to bring unemployment down.
The jobless rate, which is calculated using a separate household survey, held steady at 9.5% in July
Wait until the huge tax hikes go into effect next year, and it’ll be a lot worse. Of course, the media will tell you it’s all “unexpectedly”.
I’m at BlogHer, and blogging will continue to be sporadic.