The Conference Board's employment trends index fell 0.9% in July to 112.1 from June's reading of 113.1. Compared to July 2007, the index is down more than 7.5%.

"This economy remains too weak to stem the monthly loss in jobs," said Gad Levanon, senior economist at The Conference Board. "Unless the labor market turns around soon, unemployment could pass 6% in early 2009."