Job growth is a key indicator of future economic expansion
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Employers in the US added 92,000 new jobs in July, the lowest rate of employment since February, Department of Labor numbers show.
In a further discouraging sign of the pace of economic growth, the national unemployment rate rose to its highest level since the start of the year.
The 4.6% unemployment rate in July was the highest since a similar 4.6% rate in January.
In addition, for the first time in 18 months, the government cut hiring.
The disappointing figures will not help ease the worries over the outlook for the economy, prompted by the deepening crisis in the county's sub-prime mortgage sector that is shaking markets.
"If you already got a dip as far as employment goes and unemployment is edging up, the question is - what's next month's number going to look like when subprime and credit jitters really start to rear their ugly head," said Alan Lancz, president at Alan B. Lancz & Associates.
Discouraging
The pace of employment in July was the slowest since February, when 90,000 jobs were added to the US economy.
Job growth was heavily supported by the service sector, which added 104,000 jobs, while industry continued its downward spiral and was forced to shed 12,000 positions.
Estimates of job creation in May and June were also revised downwards.
The Labor Department said there were 6,000 fewer jobs created in June than the 132,000 reported previously. A month earlier 188,000 jobs were created - 2,000 fewer than estimated.
The US economy grew by 3.4% in the three months to June, which was faster than expected, but other more recent economic indicators regarding consumer spending and house building have been disappointing.
One-Minute World News
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