US employers axed 533,000 jobs in November, the biggest monthly cut in 35 years, US Labor Department has said.
US employers axed 533,000 jobs in November, the biggest monthly cut in 35 years, US Labor Department has said.
In a dramatic indication of the worsening situation in the economy, the US jobless rate rose to a 15-year high of 6.7% from 6.5% in October.
In a dramatic indication of the worsening situation in the economy, the US jobless rate rose to a 15-year high of 6.7% from 6.5% in October.
Since thee latest figures were compiled, further jobs have been lost including big cuts at AT&T.
Since the latest figures were compiled, further jobs have been lost including big cuts at AT&T.
Weak economic data has fuelled fears that the world's biggest economy is set for a deep, long downturn.
Weak economic data has fuelled fears that the world's biggest economy is set for a deep, long downturn.
The dollar fell against major currencies, and US light crude dived $1.31 to $42.31 a barrel after the November jobless figures were unveiled.
Recession year
The economy has just collapsed, and has gone into a free fall Richard Yamarone, Argus Research
The National Bureau of Economic Research said this week that the US entered a recession in December 2007.
The National Bureau of Economic Research said this week that the US entered a recession in December 2007.
Separately, a measure of US service sector activity, the Institute for Supply Management's index, dropped to a record low in November.
Separately, a measure of US service sector activity, the Institute for Supply Management's index, dropped to a record low in November.
The US service sector makes up about 80% of US economic activity.
The US service sector makes up about 80% of US economic activity.
November was the 11th month in a row that the economy lost jobs.
November was the 11th month in a row that the economy lost jobs.
"You can't get much uglier than this. The economy has just collapsed, and has gone into a free fall," said Richard Yamarone at Argus Research in New York.
But some analysts say November job losses were expected to be very high.
"Markets have priced in the high job losses and unemployment rate in November," said Arpitha Bykere at RGE Monitor.
Bleak outlook
Bleak outlook
The economy contracted at an annual rate of 0.5% from July to September due to the biggest fall in US consumer spending in 28 years.
The economy contracted at an annual rate of 0.5% from July to September due to the biggest fall in US consumer spending in 28 years.
Many economists believe the gross domestic product will fall even sharper in the current quarter.
Many economists believe the gross domestic product will fall even sharper in the current quarter.
On Wednesday, the Federal Reserve Board painted a bleak picture of the US economy in its influential Beige Book, a report used to help determine US interest rates.
On Wednesday, the Federal Reserve Board painted a bleak picture of the US economy in its influential Beige Book, a report used to help determine US interest rates.
It said economic activity has weakened across the US in the past two months, with retail sales, and vehicle sales in particular, "down significantly".
It said economic activity has weakened across the US in the past two months, with retail sales, and vehicle sales in particular, "down significantly".
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