The Bureau of Labor Statistics (BLS) reported that nonfarm payrolls declined by 131,000 in July. The unemployment rate was unchanged at 9.5 percent.
The contracting payrolls figure is due to the fact that 143,000 temporary 2010 Census workers were let go by the federal government. Excluding government jobs, private payrolls rose by 71,000. The increase in private payrolls was weaker than the 100,000 increase that had been expected by Wall Street economists surveyed.
The report suggests that businesses remain cautious in the wake of the financial markets' recent turmoil. Adding to the sense of weakness in employment, private payrolls in May and June were revised lower by a cumulative 34,000. Private job growth has averaged 51,000 over the past three months. This is down from an average growth of 154,000 in February-April. Job growth has taken a step back after fairly strong gains since this time frame, putting in question the strength of the economy's recovery from its worst downturn in the post-war era.
