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WASHINGTON (MarketWatch) -- U.S. employers continued to hire but at a sluggish pace that adds to pessimism about the economic outlook and may put pressure of the Federal Reserve to take more steps to support the economy.

Private sector payrolls rose by an estimated 71,000 in July, the Labor Department said.

Total nonfarm payrolls fell by a seasonally adjusted 131,000 in July, but all the lost jobs were temporary jobs at the U.S. Census.

The number of temporary Census workers dropped by 143,000. There are still 196,000 census workers on the payroll.

The nation's unemployment rate held steady at 9.5%.

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