The unemployment rate in the US climbed to a 4-year high of 5.7% in July as employers cut 51,000 jobs, dashing the hopes of an influx of young people looking for summer work. Payroll cuts weren't as deep as the 72,000 predicted by economists, however, and job losses for both May and June were found to be smaller than previously reported.
July's reductions marked the seventh straight month in which employers eliminated jobs; the economy has lost a total of 463,00 jobs so far this year. The latest snapshot showed that a lack of credit has stunted employers' expansion plans and willingness to hire. Fallout from the housing slump and high energy prices also are weighing on employers.