Unemployment up as nearly half million jobs lost in '08

Employers shed 51,000 jobs during the month, a U.S. government report stated on Friday with the jobless rate up to 5.7 percent compared with 5.5 percent in June

In the first seven months of the year, the U.S. has lost 463,000 jobs amid a slowdown which has hit the country hard as home prices have fallen and financial services companies have suffered due to missed payments and growing foreclosures.

The job losses were less than expected, with surveys of economists expecting job losses between 65,000 and 75,000.

The payroll drops were in diverse industries such as manufacturing, retailing, temporary services industries and transportation, the U.S. Labor Department said.

Service industries fell by 5,000 while retail jobs dropped by 16,500. Temporary employment jobs were down 29,000.

Bright spots included government jobs, which grew by 25,000. Education and health services were up 39,000 jobs.