WASHINGTON • The US job engine cooled last month as hiring slowed across industrial sectors, another sign that the world's largest economy could be weakening, government data showed.

The surprisingly weak figures confirmed that labour markets this year have softened from their brisk pace last year, raising the prospect that President Donald Trump's record as a job creator could wane as next year's elections approach.

Employers added 130,000 net new positions for the month, far lower than analyst forecasts, while the jobless rate held steady at 3.7 per cent and wages rose, according to Labour Department estimates.

Amid weak investment by companies and fears of a recession, employers also say they are struggling to find qualified workers to fill open positions.

The soft job numbers could add pressure on the Federal Reserve to cut interest rates later this month.

About a quarter of last month's hires came from the government itself as the federal authorities prepare to conduct next year's census.

In the service sector, however, the retail, transportation and utilities industries all shed jobs for at least the second month in a row. Workforces also shrank in the mining sector, likely suffering from a drop in oil prices.

Hiring was cut in half in the education and health sectors and was flat for car manufacturers and information services.

AGENCE FRANCE-PRESSE