The U.S. unemployment rate dropped for the first time in 15 months, sending a strong message Friday that the recession may be close to over.
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A net total of 247,000 jobs were lost last month, the fewest in a year. That compares with 443,000 jobs that disappeared in June. The unemployment rate for July declined to 9.4 percent from 9.5 percent in June.
The dip in the unemployment rate was the first since April 2008, which was before the current recession, the worst since World War II.
When the economy is healthy, employers need to add a net total of around 125,000 jobs a month just to keep the unemployment rate stable. And to push the jobless rate down to a more normal 5 percent range, it would take stronger job growth, of at least 200,000 jobs a month. Economists say it might take until 2013 to drive down the unemployment rate to 5 percent.
If laid-off workers who have given up looking for new jobs or have settled for part-time work are included the unemployment rate would have been 16.3 percent in July. That's down from 16.5 percent in June, which was the highest on records dating to 1994. All told, 14.5 million were out of work in July.
After fresh revisions, job losses in May and June turned out to be less than previously reported. Employers cut 303,000 positions in May, compared with 322,000 previously logged. And they trimmed 443,000 in June, compared with an earlier estimate of 467,000.
The job cuts made in July were the fewest since August 2008.
The deepest job cuts of the recession came in January, when 741,000 jobs disappeared, the most in any month since 1949. Since the recession began in December 2007, the economy has lost a net total of 6.7 million jobs.
The average work week rose to 33.1 hours, after having fallen to 33 hours in June, the lowest on records dating to 1964. In addition, average hourly earnings rose to $18.56 in July, up from $18.53 in June. Hourly earnings were stagnant in June. Average weekly earnings, which fell in June, rose to $614.34.
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