US job losses reach 34-year high

US employers axed 533,000 jobs in November, the biggest monthly cut since 1974, the US Labor Department 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.

Since these latest figures were compiled, further jobs losses have been announced, including big cuts at AT&T.

The grim economic data pushed Wall Street shares down by 2.5% while oil fell to a near four-year low of $40.

Recent data has fuelled fears that the world's biggest economy is set for a deep, long downturn.

"This was much worse than was expected and represents wholesale capitulation. The threat of a widespread depression is now real and present," said Peter Morici, a professor at the University of Maryland School of Business.

Reacting to the unemployment data, US President-elect Barack Obama said: "There are no quick or easy fixes to this crisis, which has been many years in the making, and it's likely to get worse before it gets better."

In the past six months the US has lost 1.55 million jobs, almost as many as were lost in the whole 2001 recession

Ian Shepherdson, High Frequency Economics

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