Government reported a much higher than expected 533,000 jobs evaporated, and the jobless rate reached 6.7%, from 6.5% in October.

ASHINGTON – With the economy sinking faster, employers are giving more Americans dreaded pink slips right before the holidays.

The Labor Department releases a new report Friday that's expected to show the employment market deteriorated in November at an alarming clip as the deepening recession engulfed the country.

After bolting to a 14-year high of 6.5 percent in October, the unemployment rate likely climbed to 6.8 percent last month, according to economists' forecasts. If they are right, that would mark the worst showing in 15 years.

Skittish employers, which have slashed 1.2 million jobs this year alone, probably axed another 320,000 last month, economists forecast. If that estimate is correct, it would represent the deepest cut to monthly payrolls since October 2001, when the economy was suffering through a recession following the Sept. 11 terrorist attacks.

Employers are slashing costs to the bone as they try to cope with sagging appetites from customers in the United States as well as in other countries, which are struggling with their own economic troubles.

The carnage — including the worst financial crisis since the 1930s — is hitting a wide range of companies.

Just in recent days, household names like AT&T Inc., DuPont, JPMorgan Chase & Co., as well as jet engine maker Pratt & Whitney, a subsidiary of United Technologies Corp., and mining company Freeport-McMoRan Copper & Gold Inc. announced layoffs.

Fighting for their survival, the chiefs of Chrysler LLC, General Motors Corp. and Ford Motor Co. will return Friday to Capitol Hill to make a pitch to lawmakers for the second straight day for as much as $34 billion in emergency aid.

Worn-out consumers battered by job losses, shrinking nest eggs and tanking home values have retrenched, throwing the economy into a tailspin. As the unemployment rate continues to move higher, consumers will burrow further, dragging the economy down even more, a vicious circle that Washington policymakers are trying to break.

Federal Reserve Chairman Ben Bernanke is expected ratchet down a key interest rate — now near a historic low of 1 percent — by as much as a half-percentage point on Dec. 16 in a bid to breath life into the moribund economy. Bernanke is exploring other economic revival options and wants the government to step up efforts to curb home foreclosures.

Treasury Secretary Henry Paulson, the overseer of a $700 billion financial bailout program, is weighing new initiatives, too, even as his remaining days in office are numbered.

President-elect Barack Obama, who takes office on Jan. 20, has called for a massive economic recovery bill to generate 2.5 million jobs over his first two years in office. House Speaker Nancy Pelosi, D-Calif., has vowed to have a package ready on Inauguration Day for Obama's signature. The measure, which could total $500 billion, would bankroll big public works projects to create jobs, provide aid to states to help with Medicaid costs and provide money toward renewable energy development.

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

At 12 months and counting, the recession is longer than the 10-month average length of recessions since World War II. The record for the longest recession in the postwar period is 16 months, which was reached in the 1973-75 and 1981-82 downturns. The current recession might end up matching that or setting a record in terms of duration, analysts say.

The 1981-82 recession was the worst in terms of unemployment since the Great Depression. The jobless rate rose as high as 10.8 percent in late 1982, just as the recession ended, before inching down.

Given the current woes, the jobless rate could rise to as high as 8.5 percent by the end of next year, some analysts predict. Projections, however, have to be taken with a grain of salt because all of the uncertainties plaguing the economy. Still, the unemployment rate often peaks after a recession has ended. That's because companies are reluctant to ramp up hiring until they feel certain the recovery has staying power.

President-elect Barack Obama is developing a plan to create or preserve 2.5 million jobs over the next two years by spending billions of dollars to rebuild roads and bridges, modernize public schools, and construct wind farms and other alternative sources of energy.

The plan, which Obama announced yesterday during the weekly Democratic radio address, is more expansive -- and undoubtedly more expensive -- than anything proposed so far to revive the nation's deteriorating economy. Obama said the darkening economic outlook demands that Washington act "swiftly and boldly" to diminish the risk that the nation "could lose millions of jobs next year."

"The news this week has only reinforced the fact that we are facing an economic crisis of historic proportions," Obama said, citing chaotic financial markets, rising jobless claims and the specter of a "deflationary spiral that could increase our massive debt even further." He provided few details and no price tag, but said his economic team is working on "a plan big enough to meet the challenges we face that I intend to sign soon after taking office."

While cast as a response to a rapidly worsening crisis, the plan could enable Obama to shift massive sums to domestic priorities that Democrats say have long been neglected, such as health care and education. It also could provide seed money to reshape major U.S. industries, hastening the production of wind and solar energy and fuel-efficient cars, for example. Obama said the plan would be "a down payment on the type of reform my administration will bring to Washington."

Obama has scheduled his second formal news conference since the election for tomorrow to introduce his economic team, including Federal Bank of New York President Timothy F. Geithner, Obama's nominee for Treasury secretary. According to Democratic sources, Harvard economist Lawrence Summers, a Clinton administration Treasury chief, will be named director of the National Economic Council. In this capacity, Summers will coordinate the Obama administration's overall economic policy.

Obama's advisers are coordinating with Democrats in Congress to craft a proposal intended to spur economic activity. Congressional leaders have said they hope to pass it shortly after the new Congress convenes next year and have it on Obama's desk soon after he takes office on Jan. 20.

Obama's address echoed many of the same ideas Democrats on Capitol Hill have been advocating for nearly a year.

Obama said his plan would launch "a two-year nationwide effort to jump-start job creation in America and lay the foundation for a strong and growing economy. We'll put people back to work rebuilding our crumbling roads and bridges, modernizing schools that are failing our children, and building wind farms and solar panels," as well as producing fuel-efficient cars.

"These aren't just steps to pull ourselves out of this immediate crisis; these are long-term investments in our economic future that have been ignored for far too long," he said.

Economists have called on the federal government to spend at least $150 billion and as much as $500 billion to ease the effects of what is expected to be the most painful and prolonged recession since World War II. A stimulus package signed by President Bush in February cost $168 billion.

House Democrats have been talking about a new package worth at least $150 billion, and possibly much more. During the presidential campaign, Obama proposed a two-year, $175 billion stimulus package with money for cash-strapped state governments and infrastructure projects as well as a $1,000 tax credit for working families.

The campaign did not release an estimate of the number of jobs that his latest proposal would create. But congressional aides who have been involved in developing stimulus proposals said that any plan to create 2.5 million jobs is likely to be significantly larger -- probably well over $200 billion, or between 1 and 2 percent of the gross domestic product.

President-elect Barack Obama on Saturday offered an outline of his economic recovery plan and jobs were the top priority.

American workers will rebuild the nation's roads and bridges, modernize its schools and create more sources of alternative energy, creating 2.5 million jobs by 2011, Obama said in the weekly Democratic address, posted on his Web site.

"These aren't just steps to pull ourselves out of this immediate crisis," he said. "These are the long-term investments in our economic future that have been ignored for far too long."

Details of the plan are still being worked out by his economic team, Obama said, but he hopes to implement the plan shortly after taking office January 20. Watch how Obama's Cabinet is taking shape »

He referred to figures out this week showing that new home purchases in October were the lowest in 50 years, and that 540,000 new unemployment claims had been filed -- the highest in 18 years.

"We must do more to put people back to work and get our economy moving again," he said. More than a million jobs have been lost this year, he said, and "if we don't act swiftly and boldly, most experts now believe that we could lose millions of jobs next year."

The plan will be aimed at jump-starting job creation, Obama said, and laying the foundation for a stronger economy.

"We'll put people back to work rebuilding our crumbling roads and bridges, modernizing schools that are failing our children, and building wind farms and solar panels, fuel-efficient cars and the alternative energy technology that can free us from our dependence on foreign oil and keep our economy competitive in the years head," he said.

He noted he will need support from both Democrats and Republicans to pass such a plan, and said he welcomes suggestions from both sides of the aisle.

"But what is not negotiable is the need for immediate action," he said. "Right now, there are millions of mothers and fathers who are lying awake at night wondering if next week's paycheck will cover next month's bills.

"There are Americans showing up to work in the morning, only to have cleared out their desks by the afternoon. Retirees are watching their life savings disappear, and students are seeing their college dreams deferred. These Americans need help, and they need it now."

Throughout history, he said, Americans have been able to rise above their divisions to work together, he said.

"That is the chance our new beginning now offers us, and that is the challenge we must rise to in the days to come," Obama said. "It is time to act. As the next president of the United States, I will."

BT Group PLC, Britain's largest phone company, on Thursday reported quarterly earnings rose 18 percent but said it would slash 6,000 more jobs by March to keep costs down and maintain its profits.

Shares surged 9 percent on the news.

The company said profits rose because last year's earnings were artificially weighed by a large one-time restructuring cost, so the job cuts -- which come on top of 4,000 already made -- were necessary to improve overall profitability.

The majority of layoffs will hit workers employed through outside agencies, contractors and offshore workers and represents a 6 percent reduction in BT's global work force, the company said.

Net profit for the three months to Sept. 30 was 400 million pounds ($595 million), compared to 339 million pounds a year earlier, when profits were hit by a 232 million pound one-time restructuring charge. Restructuring charges this year were 72 percent lower at just 65 million pounds ($97 million).

BT said pretax profit before these one-time restructuring and voluntary redundancy costs was down 11 percent at 590 million pounds ($879 million).

Revenue for the period was 4 percent higher at 5.3 billion pounds ($7.9 billion).

Chief Executive Ian Livingston said the job cuts were part of the company's previously announced scheme to reduce costs by as much as 800 million pounds ($1.2 billion) this year, and would help the company's bottom line benefit from its increasing sales.

The company said the 6,000 job reductions would be achieved predominantly by not replacing employees who leave the company. The reductions come on top of 4,000 job cuts the company has made since April.

Of the total 10,000 jobs being cut this financial year, 4,000 are from direct staff and the other 6,000 from outside contractors, including IT and management consultants. The company said cuts would be made across all its business sectors except customer service.

"BT management is now underlining its determination to cut costs in order to benefit from still escalating revenues," said Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers.

BT said the biggest drain on second-quarter results was its beleaguered Global Services unit, which offers services to multinational companies and failed to achieve the cost savings it had planned.

Earnings before interest, taxes, depreciation, amortization and costs at the unit plunged 36 percent over the quarter to 119 million pounds ($177 million).

"Three out of our four business units, BT Retail, BT Wholesale and Openreach are delivering on or ahead of target," said Chief Executive Livingston. "But profits in BT Global Services are simply not good enough and we are taking decisive action to put matters right."

Last month, the chief executive of BT Global Services, Francois Barrault, resigned. He has been replaced by Hanif Lalani, who was the group's finance director.

Shares rose 9 percent to 123 pence ($1.84), making BT one of Thursday's strongest performers in London's FTSE 100 stock index, which fell by 2 percent.

The BT job cuts came a day after official statistics showed Britain's unemployment rate rose sharply to 5.8 percent in the three months to September. The rate rose from 5.4 percent in the previous quarter. The total number of unemployed people in Britain is now 1.82 million -- up from 1.79 million in the last figures to August, Britain's Office for National Statistics said.

Deutsche Post AG is poised to announce thousands of job cuts at its DHL Express operations in the United States, possibly as early as Monday, a person familiar with the decision told The Associated Press.

The person said on condition of anonymity Sunday that the Bonn-based express mail and logistics company was poised to announce that the cutbacks at its DHL operations in the United States would affect between 12,000 and 13,000 jobs. The person was not authorized to speak to the media.

The cuts are part of a wider plan to curtail operations in the U.S., including ground deliveries, and would likely affect drivers, shipping clerks and warehouse workers. The express unit employs some 18,000 workers.

The expected move will not signal Deutsche Post's exit from the U.S., where it faces strident competition from UPS Inc. and FedEx Corp.

The person told the AP that the company's U.S. logistics unit, which employs some 25,000 people, would not be affected and some staff at DHL would remain.

"We're not exiting the U.S. entirely," the person said.

Deutsche Post itself did not comment Sunday.

Deutsche Post said earlier this year that competition, rising fuel prices and other factors have put its U.S. DHL operations on track to lose 1.3 billion euros ($1.6 billion) by the end of the year.

In May, Deutsche Post's chief executive Frank Appel announced a radical restructuring of the U.S. operations, which have posted recurrent losses. At the time, Appel said the company's U.S. freight flights were to be taken over by rival UPS Inc.

On Friday, the U.S. unions that represent some DHL employees and pilots that currently provide air service for some of DHL's shipments said they had not been informed of any forthcoming changes. But DHL scheduled a conference call with reporters for Monday afternoon to discuss news that was to be announced earlier in the day and answer questions about DHL's U.S. Express business.

DHL spokesman Jonathan Baker declined to provide details Friday on what will be announced Monday. As to the talks with UPS, he said, "We are continuing to talk with UPS. The talks are constructive. We expect to finalize our negotiations by year-end."

A person familiar with UPS' talks with DHL said Friday that if DHL makes significant cuts to its ground operations in the U.S., it wouldn't necessarily affect UPS and DHL reaching a deal since the talks solely involve air delivery of packages, not ground delivery.

The person spoke on condition of anonymity because of the sensitive nature of the talks.

UPS and DHL proposed a collaboration in May in which UPS would carry some air packages for DHL. The deal, if completed, could last up to 10 years and infuse up to $1 billion in annual revenue for UPS.

UPS has said the contract will mostly involve the transport of DHL packages between airports in North America -- not the pickup or delivery of DHL packages to customers. UPS has said the deal is similar to its existing agreement with the U.S. Postal Service.

Thousands of jobs could be lost at an air cargo facility in Wilmington, Ohio, if the agreement between DHL and UPS is consummated.

Deutsche Post slashed its earnings forecasts for both 2008 and 2009 late last month, saying it expects pretax profit to fall 8 percent in the third quarter "as the global economic environment deteriorated markedly."

Deutsche Post is scheduled to release its third-quarter results on Monday, followed by its nine-month figures on Tuesday, according to its Web site.

The source told AP that discussions with UPS on the business were ongoing, but because of the expected job cuts, the talks would find themselves conducted on a new basis. Deutsche Post, in the interim, is expected to move its remaining freight in the U.S. via road and highway transit, while it could close some of its operations in many cities altogether, the source said.

It was unknown how many jobs of contracting companies working with DHL in the U.S. could be affected.

The source said that some U.S. DHL employees would remain working with American companies' shipments to and from Europe and Asia.

Shares of Deutsche Post were up 5.7 percent to close at 9.36 euros ($11.90) on Friday in Frankfurt.

------

AP Business Writers George Frey in Frankfurt, Germany, Harry R. Weber in Atlanta and Samantha Bomkamp in New York contributed to this report.