Special Report: Global Financial Crisis

A homeless man cadges on a street of Manhattan, New York, the United States of America, Nov. 11, 2008. The unemployment rate in the United States rose to 6.7 percent in November, the highest level in 15 years, as employers slashed 533,000 jobs, the most since December 1974, the Labor Department reported Friday. (Xinhua Photo) Photo Gallery>>>

    WASHINGTON, Dec. 5 (Xinhua) -- The unemployment rate in the United States rose to 6.7 percent in November, the highest level in 15 years, as employers slashed 533,000 jobs, the most since December 1974, the Labor Department reported Friday.

    Employers have cut jobs each month this year. Job losses in September and October turned out to be much worse. Employers cut 403,000 jobs in September, versus 284,000 previously reported, and axed 320,000 in October, compared with an initial estimate of 240,000.

    Since the start of the recession in December 2007, as recently announced by the National Bureau of Economic Research, employment has fallen by 1.9 million. Two-thirds of the losses occurred in the past three months.

    The unemployment rate of 6.7 percent, which followed a 6.5 percent rate in October, has surpassed the high seen after the last recession in 2001. The jobless rate peaked at 6.3 percent in June 2003.

    Economists had been expecting the jobless rate to climb to 6.8 percent and employers to cut 320,000 jobs in November.

    Job losses were large and widespread across the major industry sectors last month.

    Factories cut 85,000 jobs, construction companies axed 82,000 jobs, retailers cut payrolls by 91,000, professional and business services reduced employment by 101,000, financial activities cut 32,000 jobs, and leisure and hospitality axed 76,000 positions.

    The reductions offset an employment gain of 34,000 in health care.

    The new figures released by the Labor Department showed that the employment market, which is critical for the overall economy to grow, has been deteriorating at an alarmingly rapid clip.

    Embattled by a housing collapse, mounting foreclosures and credit tightening, employers could cut back on hiring further. Many economies expect the unemployment rate to climb to 8 percent, possibly higher, next year.

Bush acknowledges U.S. economy in recession 

U.S. President George W. Bush speaks about the economy at the White House in Washington Dec. 5, 2008. Bush Friday acknowledged for the first time that the U.S. economy was in recession. (Xinhua/Reuters Photo) Photo Gallery>>>

    WASHINGTON, Dec. 5 (Xinhua) -- U.S. President George W. Bush Friday acknowledged for the first time that the U.S. economy was in recession.

    "Today's job data reflects the fact that our economy is in a recession," Bush said hours after the Labor Department reported that the unemployment rate rose to 6.7 percent in November, the highest level in 15 years.

Obama warns U.S. economy may get worse

    WASHINGTON, Dec. 5 (Xinhua) -- U.S. President-elect Barack Obama warned on Friday that the worst was yet to come for the U.S. economy after the unemployment rate rose to 6.7 percent in November, the highest level in 15 years.

    "The 533,000 jobs lost last month, the worst job loss in 34 years, is more than a dramatic reflection of the growing economic crisis we face," said Obama in a statement.

Wall Street advances despite unexpected unemployment data 

    NEW YORK, Dec. 5 (Xinhua) -- Led by financial sector, Wall Street advanced Friday despite an unemployment report showed that the U.S. economy is heading for a deep recession.

    The U.S. Labor Department said that employers cut 533,000 jobs in November, the most in 34 years, and the unemployment rate rose from 6.5 percent in October to 6.7 percent last month, a 15-year high. Investors concerned that the nation's economy is heading fora deep recession.

Fed: U.S. economic activity has weakened since mid-October 

    WASHINGTON, Dec. 3 (Xinhua) -- The U.S. economy has weakened since mid-October as the worst financial crisis in decades, which is ongoing as of December, damps consumer spending and business investment, the Federal Reserve said Wednesday in its latest survey on business conditions around the nation.

    "Overall economic activity weakened across all Federal Reserve districts" since the last report, which was issued on Oct. 15, the Fed said in the survey, the so-called Beige Book.

U.S. service sector contracts more than expected in November 

    WASHINGTON, Dec. 3 (Xinhua) -- Business activity in the U.S. service sector contracted by 7.1 percentage points in November, far more than expected, the Institute for Supply Management (ISM) said Wednesday in its latest non-manufacturing survey.

    The Tempe, Arizona-based research group said its index of business activity in the non-manufacturing sector registered only 37.3 last month, lower than the 44.4 level in October and the 42.0expected by economists.