"The drop in the workweek suggests that firms have cut hours instead of cutting jobs," said Robert Brusca, head of Fact and Opinion Economics. "If the weakness continues, history suggests that deeper job cuts will come next."
Combined with other data released in recent days, the employment report depicts an economy that is struggling to avoid a deep downturn but giving few indications that it can right itself any time soon.
The government reported Thursday that gross domestic product -- a measure of the economy's total output of goods and services -- expanded at a 1.9% annual clip in the second quarter.
That was up from 0.9% in the first quarter but was below expectations and was partly attributable to the government's economic-stimulus program, which is nearing its end. The government also revised its figures to show that the economy contracted in the fourth quarter of last year.
"One thing is perfectly clear," said Lou Crandall, chief economist at Wrightson ICAP, a research firm in Jersey City, N.J. "It doesn't matter whether we decide that this is a recession or not. This is clearly an important and painful event."
The troubled job market has stirred a debate about whether the government should enact a second stimulus package this year.
"It's pretty clear the tax rebate, while it helped a little bit, really didn't do what had been hoped in terms of providing some spark for the economy," said Christine Owens, executive director of the nonprofit National Employment Law Project.
The softness in employment makes it likely that the Federal Reserve will hold interest rates steady at its regular rate-setting meeting next week.
Among other highlights of the job report:
* Service-sector jobs fell by 5,000, their first drop since March. Private-sector service jobs declined by 30,000 in July, after drops of 17,000 in June and 48,000 in May, said Michael Darda, chief economist at MKM Partners in Greenwich, Conn.
* The number of temporary jobs fell by 29,000, showing how hesitant employers are to add positions. An increase in temp workers sometimes signals a turnaround because companies often hire them in the early stages of an expansion rather than risk the addition of permanent workers.
* The healthcare and mining sectors are still hiring. The number of healthcare jobs rose by 32,900 in July and is up 368,000 over the last 12 months. The mining sector, which includes oil and gas drilling, added 10,300 jobs in July and has gained 222,000 positions since reaching a low in April 2003.
* The jobless rate for teenagers jumped to 20.3% last month, the highest rate since October 1982, from 18.1% in June and 15.3% in July 2007.
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walter.hamilton@latimes.com
Times staff writer Tom Petruno contributed to this report.
