No sign jobs picture getting worse: execs

NEW YORK (Reuters) - Friday's weaker-than-expected January jobs report confirms recent signs that the U.S. economy is slowing, but it does not suggest the U.S. jobs picture will get much worse, staffing industry executives said on Friday.

The U.S. economy lost 17,000 jobs outside the farm sector last month, compared with expectations of 80,000 jobs being added. It was the first monthly job loss since August 2003.

The unemployment rate eased to 4.9 percent from 5.0 percent a month ago, the Department of Labor said.

"There's no doubt the economy has slowed," said Tig Gilliam, who heads North American operations for Swiss-based Adecco SA, the world's biggest staffing company.

But the slowdown in job growth in recent months can largely be attributed to construction and manufacturing, two sectors that have been hurt by a weak housing market and overseas competition.

The unemployment rate in those categories is twice the national average, Gilliam said. "You have sectors of the economy that are clearly struggling, so of course the total job growth has got to slow."

Gilliam puts the chance of a U.S. recession this year at 50-50, as weak areas are balanced out by strength in areas like finance, accounting, legal and information technology.

"We're going to see strength in the professional skills over the first half," Gilliam said. "If we don't get growth in the professional skills area, I'll change my forecast for the recessionary outlook."

A weak dollar may help U.S. exports, which could improve the jobs picture in the manufacturing sector, he added.