WASHINGTON (August 3, 2012)--U.S. employers added 163,000 jobs in July, a hopeful sign after three months of sluggish hiring, the U.S. Labor Department said Friday.

The unemployment rate rose to 8.3 percent from 8.2 percent in June, the Labor Department said.

July's hiring was the best since February.

Still, the economy has added an average of 151,000 jobs a month this year, roughly the same as last year's pace and that’s not enough to satisfy the 12.8 million Americans who are unemployed.

The rate increased because the government uses two surveys.

A survey of businesses showed job gains, but a survey of households showed fewer people had jobs.

Economists say the business survey is more reliable.

High unemployment could hurt President Barack Obama's re-election hopes.

No president since World War II has faced re-election with unemployment standing at more than 8 percent.