US shares slump on work worries

US shares fell sharply on Friday after the country's unemployment rate rose to a two-year high in December, raising fears about a possible recession.

The Dow Jones index slumped 256.54 points, 2% to close at 12,800.18 while the tech-heavy Nasdaq plunged 98.03 points, 3.8% to 2,504.65.

The US Labor Department said employers added 18,000 jobs to their payrolls, far below economists' forecasts.