The nation's unemployment rate remain unchanged at 9.5 percent as the Obama administration and the democratically controlled Congress struggle to find ways to stimulate the economy.
The Department of Labor reported on Friday that private employers added only 71,000 jobs in July, which was well below the 200,000 needed each month to reduce the stubbornly high unemployment rate.
The department also revised its jobs figures for June, stating that businesses hired fewer workers. June's job gains were lowered to only 31,000, well below the originally reported 83,000.
In all, the Department said that the economy lost 131,000 jobs in July, mostly because 143,000 temporary Federal Census jobs ended.
The Department also reported that almost 15 million Americans were out of work and looking for employment, an alarmingly high number considering the federal government bailouts to various sectors of the economy.
Economists argue that slow hiring is hindering the economic recovery and point to the concerns of private employers about the direction of the economy, especially as the federal stimulus programs end and as the federal income tax cuts passed by Presidentexpire at the beginning of 2011.