Employers Shed Fewer Jobs Than Expected in July.

Washington, DC, Aug. 1, 2008--The U.S. unemployment rate rose to a four-year high of 5.7 percent in July as employers cut 51,000 jobs, according to the Department of Labor.

Payroll cuts were fewer than the  72,000 predicted by economists. And, job losses for both May and June were smaller than previously reported.

July's reductions marked the seventh straight month where employers eliminated jobs. The economy has lost a total of 463,00 jobs so far this year.

The statistics 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.

The increase in the unemployment rate to 5.7 percent, from 5.5 percent in June, in part came as many young people streamed into the labor market looking for summer jobs. This year, fewer of them were able to find work, the government said. The unemployment rate for teenagers jumped to 20.3 percent, the highest since late 1992.

Job losses in July were the heaviest in industries hard hit by the housing, credit and financial woes. Manufacturers cut 35,000 positions, construction companies got rid of 22,000 and retailers shed 17,000 jobs.