US employers unexpectedly cut more jobs in September than in August, underscoring the fragility of the economy’s recovery from its worst recession in 70 years as businesses remain cautious about the future.

The Labor Department said yesterday non-farm payrolls dropped by 263,000, marking the 21st straight monthly decline, and helping to lift the unemployment rate to a 26-year high of 9.8 percent from 9.7 percent in August.

Economists said September’s reading was distorted by a 53,000 drop in government employment.