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The San Diego Workforce Index, compiled by the San Diego Workforce Partnership, declined for the second straight month in July. Local job losses, sagging consumer confidence, and a slight rise in the unemployment rate weighed heavily on the index.

"I worry that we won't see much improvement going forward," said Gary Moss, labor-market specialist for the partnership. "Employers are in a wait a 'wait and see' mode."

With 6000 jobs lost between June and July (when summer hiring normally raises employment), "It's clear that San Diego is not out of the recession woods yet," said Moss.

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