U.S. employers cut 247,000 jobs in July, far less than expected and the least in any month since last August, according to data on Friday that provided the clearest evidence yet that the economy was turning around. With fewer workers being laid off, the unemployment rate eased to 9.4 percent in July from 9.5 percent the prior month, Labour Department data showed, the first time the jobless rate had fallen since April 2008. The government revised job losses for May and June to show 43,000 fewer jobs lost than previously reported. Analysts had expected non-farm payrolls to drop 320,000 in July and the unemployment rate to rise to 9.6 percent. The forecast was made earlier this week before other jobs data prompted some economists to lower their estimates for job losses. U.S. stock index futures jumped on the data, which was seen as more evidence the economy's healing process had started. U.S. government bond prices tumbled and the dollar rose against the Japanese yen. "This is positive news. This is the best showing (since) prior to the financial meltdown and those are important benchmarks to achieve," said Richard Dekaser, president of Woodley Park Research in Washington. Data ranging from home sales to manufacturing have pointed to an economy starting to dig itself out of the worst recession since the Great Depression of the 1930s. The fall in the jobless rate will be good news for President Barack Obama, who has seen his standing in public opinion polls slip as Americans fret about the weak economy and high unemployment.