Employers cut 533,000 jobs in Nov., most since 1974

WASHINGTON -- Employers slashed jobs at the swiftest pace in 34 years in November, leading the unemployment rate to rise to 6.7% from 6.5% in October and the highest in 15 years, the government said Friday. Speaking after the report, President Bush used the word "recession" for the first time to describe the economy's state.

The report points to a rapidly deepening recession. The unemployment rate was held down as discouraged workers dropped out of the job pool.

Adding in those who have given up looking for work and people working part time because they can't find full-time work, unemployment was 12.5% in November, up from 11.8% in October and highest since the department began tracking the number in 1994.

The monthly employment report includes figures from a household survey, which produces the unemployment rate, and a survey of businesses, which produces the payroll jobs numbers.

That survey showed that businesses cut 533,000 jobs last month, seasonally adjusted, the most since December 1974, when the USA was in the midst of a severe recession, and far greater than the 320,000 jobs lost in October. Employers cut more than 1.9 million jobs in the first 11 months of 2008.

More than 10.3 million Americans were unemployed in November, the most in 25 years.

"This is almost indescribably terrible," High Frequency Economics chief U.S. economist Ian Shepherdson said in a note to clients. He says in the past six months, employers have cut 1.55 million jobs, almost as many as were cut in the 2001 recession.

Bush told reporters: "Our economy is in a recession. This is in large part because of severe problems in our housing, credit and financial markets, which have resulted in significant job losses."

The White House did not use the term until Monday, when a panel for the National Bureau of Economic Research gave official word that the economy is in a recession and has been since last December.

Bush expressed deep concern for Americans who have lost jobs, but also said there are some encouraging signs about the credit markets.