Payrolls Fall 51,000; Jobless Rate Up to 5.7%

WASHINGTON — The U.S. July employment report continues the recession theme: July marked seven consecutive months of job losses at a 51,000 drop in payrolls and the civilian unemployment rate is up a full percentage point over the year to 5.7% in the latest measure.

The 0.2 point surge in the civilian unemployment rate to 5.7% appears to be partly a result of teenage unemployment.

Unemployment surged for men and teens, and the Bureau of Labor Statistics pointed out that millions of teens jumped into the labor market in summer. But that is only a partial explanation of the surge as fewer were able to find jobs. Teenage unemployment was 20.3% in July, compared to an average rate of 15.7% in summer 2007.

Unemployment was 5.682% unrounded and was last higher at 5.8% overall in March 2004.

Average hourly earnings rose 0.3% to 3.4% over the year but hours slipped, implying weak incomes and production.

June-May payrolls were revised up a total of plus-26,000.

— Market News International

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