US unemployment rate slips to 9.4%

The number of jobs lost in the US came down sharply by 247,000 as the unemployment rate declined to 9.4 per cent in July, one of the strongest indications yet that recession in the world's largest economy is easing.

The job cuts were much less than expected and the unemployment rate dropped for the first time since April 2008.

"Non-farm payroll employment continued to decline in July (-247,000), and the unemployment rate was little changed at 9.4 per cent," the US Bureau of Labor Statistics said in a statement today.

Interestingly, estimates indicated that over 300,000 jobs would be lost and jobless rate would touch 9.6 per cent in July.

 

In June, the unemployment rate touched a 26-year high of 9.5 per cent and 443,000 jobs were shed during that month.

Since December 2007 -- when the economy officially entered into recession -- payroll employment has fallen by 6.7 million.

Spurring hopes of revival in the job market, the average monthly job loss for May through July stood at 331,000, nearly half the count of job cuts during the November to April period.

There were 14.5 million unemployed people in the country in July, the official data showed.