US employment falls

The US Labour Department has reported that the economy has cut jobs for a second month in a row.

Overall employment fell by 131,000 in July.

Meanwhile private sector employment rose by less than expected with 71,000 jobs created.

The unemployment rate remained at 9.5 per cent, lower than the market's expectations of 9.6 per cent.

Some experts have warned that continued high unemployment is hampering growth.