US jobs growth slows as policymakers fight inflation

Jobs growth in the US has slowed for a second month, in a sign that the labour market in the world's largest economy may be starting to cool.

US employers added 263,000 new jobs in September, which is almost half the average number seen so far this year.

The US central bank has said some slowdown in hiring will be necessary to rein in prices that are rising at the most rapid pace since the 1980s.

But they are trying to avoid a sharp economic downturn, or recession.

Analysts said that Friday's report from the US Labor Department showed the jobs market remains tight, pointing to the unemployment rate that fell from 3.7% in August to 3.5% last month.

They said the report was likely to reinforce the central bank's commitment to increasing interest rates to tackle rising prices.

The dollar, which has strengthened alongside higher US interest rates, rose following the report, pushing the pound and other currencies lower.

The pound slipped to $1.11 following the release of the US jobs figures, having been above $1.12 before.