WASHINGTON — The nation's unemployment rate inched up to a six-month high of 4.6 percent in July as hiring simmered down. Workers' wages, meanwhile, grew modestly.

The latest snapshot of conditions nationwide, released by the Labor Department yesterday, showed that new job creation has slowed. Employers increased payrolls by 92,000 last month, down from 126,000 in June. It marked the fewest add-ons in a month since February.

Hefty job cuts by the government were a big factor in the subdued employment picture. Jobs also were eliminated by construction companies, factories and retailers — in part reflecting the toll of the sour housing market and the struggles of the U.S. auto industry. Employment in healthcare, food services, architecture and engineering, computer design and in other industries expanded.

"There are some indications that the job market may be easing up a tad but the fundamentals still remain quite solid," said Lynn Reaser, chief economist at Bank of America's Investment Strategies Group. "So for people looking for work, there are still opportunities, but some areas are much more active in seeking workers than others," she said.

Even with the uptick from June's 4.5 percent, the current jobless rate is still low by historical standards. The lowest unemployment rate in a generation — 3.8 percent — was logged in 2000. In contrast, the rate topped 10 percent in the early 1980s.

July's jobless rate was the highest since January, when it also was 4.6 percent. The last time it was higher was August 2006.

A separate report showed that the service sector — an engine of the U.S. economy — lost momentum in July. The Institute for Supply Management's index dipped to 55.8, from 60.7 in June. Readings above 50 indicate expansion, while those below 50 indicate contraction.

The latest economic reports were consistent with analysts' forecasts that the economy will grow gradually through the rest of this year.