UPDATE 1-Monster employment index rises in August

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Sept 4 (Reuters) - A gauge of online labor demand in the U.S. edged up in August, snapping a three-month decline, as job availability picked up with employers gearing up for a late-summer and fall hiring season.

Monster Worldwide Inc MNST.O, an online careers and recruiting firm, said its Employment Index rose 2 percentage points to 159 during the month. Year-over-year, the index fell 14.5 percent from 186 points in August last year.

"Employers are now stepping up their online recruitment efforts in preparation for the fall hiring season but activity in the job market remains muted compared to a year ago," said Jesse Harriott, vice-president of research at Monster Worldwide.

Job availability rose in 14 of the index's 20 industry categories and in 13 of the 23 occupational categories measured in August.

Recruiting in the mining industry rose, while manufacturing and construction continued a downward trend, Monster said in a statement.

Online job demand in the utilities industry registered the highest rate of increase in August.

Finance and insurance and accommodation and food services industries -- two sectors hit hard by economic downturn -- showed a slight increase in online recruitment during the month.

The Monster Employment Index is a monthly gauge of U.S. online job demand based on a real-time review of millions of employer job opportunities culled from a large representative selection of corporate career Web sites and job boards, including Monster. (Reporting by Saumyadeb Chakrabarty in Bangalore; editing by Sue Thomas)