The report also noted that the country's labor market has shown modest improvement in the first half of this year. On average, private-sector employment rose 100,000 per month over this period, with increases across a wide range of industries.

"Nonetheless, the pace of hiring to date has not been sufficient to bring about a significant reduction in the unemployment rate," it said.

The unemployment rate averaged 9.75 percent in the second quarter, only slightly below its recession high of 10 percent in the fourth quarter of 2009, the report noted, adding that long- term unemployment has continued to worsen.

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