The U.S. economy had a net loss of 62,000 jobs in June, although the unemployment rate held steady at 5.5 percent.

Thursday'sreport from the Labor Department shows the U.S. economy losing morejobs than it created for the sixth month in a row.

So far thisyear, the U.S. economy has cut 438,000 jobs, a sharp contrast from2007, when employment grew by an average of more than 90,000 jobs amonth.

U.S. Labor Secretary Elaine Chao, 3 Oct 2008

But U.S. Labor Secretary Elaine Chao told the Bloombergnews service that the unemployment figures are still better than theywere in the 1990s.

A separate report from a business group, theInstitute for Supply Management says a key measure of the servicessector of the economy shrank in June as rising costs and falling ordershit many businesses. Services include everything from banks toairlines and make up 80 percent of the U.S. economy.

The U.S.economy has been hurt by skyrocketing oil and gasoline prices, whichboth hit record highs today. The average U.S. retail price of gasolinerose to nearly $1.08 per liter ($4.10 a gallon). Economic growthis also hampered by falling home prices, tight credit, and low consumerconfidence.

These economic problems could cut the consumer spending that drives two-thirds of U.S. economic activity.

Some information for this report was provided by Bloomberg.