Employers cut 533K jobs in Nov., most in 34 years

By JEANNINE AVERSA – 3 hours ago

WASHINGTON (AP) — Skittish employers slashed 533,000 jobs in November,
the most in 34 years, catapulting the unemployment rate to 6.7 percent,
dramatic proof the country is careening deeper into recession.

The new figures, released by the Labor Department Friday, showed the
crucial employment market deteriorating at an alarmingly rapid clip, and
handed Americans some more grim news right before the holidays. The net
loss of more than a half-million jobs was far worse than analysts expected.

As companies throttled back hiring, the unemployment rate bolted from
6.5 percent in October to 6.7 percent last month, a 15-year high.

"These numbers are shocking," said economist Joel Naroff, president of
Naroff Economics Advisors. "Companies are sharply reacting to the
economy's problems and slashing costs. They are not trying to ride it out."

The unemployment rate would have moved even higher if not for the exodus
of 422,000 people from the work force. Economists said many of those
people probably abandoned their job searches out of sheer frustration.
In November 2007, the jobless rate was at 4.7 percent.

The U.S. tipped into recession last December, a panel of experts
declared earlier this week, confirming what many Americans already thought.

Since the start of the recession, the economy has lost 1.9 million jobs,
the number of unemployed people increased by 2.7 million and the jobless
rate rose by 1.7 percentage points. More evidence that the labor pain is
far from over came Friday when General Motors Corp. said it will lay off
another 2,000 workers as it cuts shifts at three car factories starting
in February due to slowing demand for their products.

President George W. Bush, who used the word "recession" for the first
time to describe the economy's state, pledged Friday to explore more
efforts to ease housing, credit and financial stresses.

"There is still more work to do," Bush said. "My administration is
committed to ensuring that our economy succeeds."