Job cuts in April less severe than feared

By Glenn Somerville

WASHINGTON (Reuters) - The economy lost jobs for the fourth month in a row in April but at a slower pace than earlier in the year, easing fears that the economy was at a growing risk of slipping into a deep recession.

The Labor Department said on Friday that 20,000 jobs were shed last month, far fewer than the 80,000 that economists had anticipated. The national unemployment rate, which is compiled from a separate survey, unexpectedly fell to 5 percent from 5.1 percent in March.

Since 2008 began, some 321,000 jobs have been lost from payrolls, yet the economy expanded slightly during the first quarter and factories are still getting enough orders to keep hope alive that growth may gain momentum later in the year.

"The economy is just barely treading water," said Richard Yamarone, chief economist for Argus Research in New York, after the jobs figures were issued. "It's not imploding but it's not desirable either."

Major stock indexes initially climbed on the jobs report but finished mixed on a jump in oil prices and disappointing results from Sun Microsystems Inc (JAVA.O: Quote, Profile, Research), the world's fourth-largest business computer maker.

The Dow Jones industrial average rose 48.2 points to close at 13,058.2 while the tech-laden Nasdaq Composite Index fell 3.72 points and ended at 2,476.99.

Prices for U.S. Treasury bonds were broadly lower as investors bet the jobs report raised chances the Federal Reserve will be able to pause its rate-cutting campaign.

The dollar's value hit a two-month peak against a basket of other currencies. "The market likes the U.S. jobs report and most are thinking that if we do slip into a recession, it's going to be mild and brief," said Matt Kassel, director of foreign exchange at ING Capital Markets in New York.