Unemployment rate hits four-year high

In another sign of a floundering economy, the unemployment rate vaulted to 5.7% in July, marking its highest rate since March 2004, as companies pared down payrolls for the seventh consecutive month, according to data from the Department of Labor. That compared with unemployment rates of 5.5% in both May and June. Non-farm payrolls fell by 51,000 last month after June job losses were revised down to 51,000, from 62,000. May job losses were pared down to 47,000, from the 62,000 that were initially reported. Payrolls have fallen by 463,000 since the beginning of the year. The industries posting larger job losses were construction, manufacturing and professional services, which recorded declines of 22,000, 35,000 and 34,000 jobs, respectively. In one of the report's few bright spots, the health care industry added 33,000 jobs. The average hourly salary rose 6 cents to $18.06 per hour, up 3.4% in the 12-month period ending in July, following a gain of 5 cents in June. In other economic news, the Department of Commerce reported that construction spending fell 0.4% in June. The Institute for Supply Management of Tempe, Ariz. reported that its manufacturing index was 50% in July, indicating that an equal number of firms said business was either growing or slowing.