– U.S. employers cut payrolls at the steepest rate in 5-1/2 years in September, slashing 159,000 jobs as employment contracted for a ninth straight month.

Here is the presidential candidates' reaction to the unexpectedly large number of job losses shown in the Labor Department report:

REPUBLICAN JOHN MCCAIN

“Today's report of another 159,000 lost jobs confirms what America's working men and women have understood for months: our nation's economy is on the wrong track. It is imperative that Congress act to address the financial crisis while protecting taxpayers and being good stewards of their dollars. But we must do more.”

“I am committed to getting to the roots of this crisis – reforming Washington and cleaning up the mess created by the greed and crony capitalism of government-backed mortgage giants – Fannie Mae and Freddie Mac.”

“Unlike Senator Obama, I do not believe we will create one single American job by increasing taxes, going on a massive spending binge, and closing off markets. Our nation cannot afford Senator Obama's higher taxes.”

DEMOCRAT BARACK OBAMA

“With three-quarters of a million jobs lost this year, and millions of families struggling to pay the bills and stay in their homes, this country can't afford Sen. McCain's plan to give America four more years of the same policies that have devastated our middle-class and our economy for the last eight.”

“Instead of Senator McCain's plan to give tax breaks to CEOs and companies that ship jobs overseas, I will rebuild the middle-class and create millions of new jobs by investing in infrastructure and renewable energy that will reduce our dependence on oil from the Middle East.”

“I also call on Congress to pass an immediate rescue plan for our middle-class that will provide tax relief, save one million jobs, and save our local communities from harmful budget cuts and painful tax increases.”

(Reporting by Deborah Charles)