Official figures show that the US economy unexpectedly lost jobs in September for a fourth month in a row. This came as government employment fell and private hiring was less than expected.
Employment in the month dropped by 95,000, the Labor Department said. Private employment, seen as a better measure of labour market health, increased 64,000 after rising 93,000 in August. A total of 77,000 temporary jobs for the US census were terminated last month.
Analysts had expected overall employment to be broadly unchanged, with private hiring gaining 75,000.
The government revised data for July and August to show 15,000 more jobs lost that previously reported. It also said its preliminary benchmark revision estimate indicated employment in the 12 months to March had been overstated by 366,000. The unemployment rate was unchanged at 9.6% in August.
In the wake of speeches by senior Federal Reserve officials, including chairman Ben Bernanke, analysts believe it now almost certain the US central bank will launch a second round of asset purchases - with many expecting a move in November. These are aimed at injecting more money into the financial system in an effort to boost the economy.
The Fed has already pumped $1.7 trillion into the economy by buying mortgage-related and government bonds.
Private hiring last month was held back by the goods-producing industries, where employment fell by 22,000 as manufacturing employment fell 6,000 after declining 28,000 in August. Construction payrolls fell 21,000, reflecting the lasting troubles in the housing market, after August's boost from the return of striking workers. Private services sector employment rose 86,000 after increasing 83,000 in August.