Some 159,000 US citizens lost their jobs in September as businesses attempted to cut costs by reducing their workforce, it has emerged.

According to the Labor Department, which released the data, this figure is the largest in five years and provides further evidence that the economy is taking a sharp downturn.

The biggest job cuts were made in the construction, manufacturing and retail sectors.

In the last 12 months, over 2.2 million US citizens have lost their jobs, adding to the financial pressures they are facing.

Rising debt levels and soaring food and fuel costs are putting a huge strain on the budgets of many American families.

As a result, many consumers are spending less, with recent government data revealing flat retail sales in August.

Meanwhile, financial analysts have warned that unemployment could reach seven per cent before labor market conditions improve, Reuters reports. The current jobless rate stands at 6.1 per cent.

-----------------------------------------------------------------------