US economy added 163,000 jobs in July as Obama handed major election boost

The US added 163,000 new jobs in July, ahead of economists' expectations and offering some relief for President Obama as the economy emerges as the key battleground of the 2012 election.

Private companies added 172,000 jobs last month, while governments shed 9,000 positions. The US added just 64,000 jobs in June.

Payroll figures are the highest in five months but were not enough to bring down 8.3% unemployment rate.

Republican presidential candidate Mitt Romney called the figures "a hammer blow to struggling middle-class families".

"President Obama doesn't have a plan and believes that the private sector is 'doing fine'. Obviously, that is not the case. We've now gone 42 consecutive months with the unemployment rate above 8%. Middle-class Americans deserve better, and I believe America can do better," he said in a statement.

Faucher senior economist at PNC Financial Services said the slight rise in unemployment was disappointing but said the household survey, from which the number is derived, was volatile. "One month's figure doesn't tell us much but it is something we will have to watch," he said.
3rd August 2012