The Labor Department said the US economy lost 263,000 jobs in September, which was more than had been expected.That caused crude oil futures to drop 2.6%, or $1.81, to $69.01 a barrel. Brent crude, traded in London, also shed $1.82 to $67.37.
US stocks and the dollar also fell, as investors had cause to reconsider hopes for a quick economic recovery.
'Glacial'
The figures for the months of July and August were also revised higher, showing 13,000 more jobs lost than previously reported.
The jobless rate is now at a fresh 26-year high of 9.8%.
"Compared to previous recessions, the pace of the current recovery can only be characterized as glacial," said Mike Fitzpatrick, who works at MF Global.
Rising unemployment weighs heavily on the US economy, which relies heavily on consumer spending to power growth.
The number of people out of work has risen by 7.6 million since December 2007 to 15.1 million.













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