More and more people are without jobs. That's the latest from the Labor Department, which is saying the cuts haven't been so bad since the summer of 2003.

The Associated Press is reporting: "Nervous employers cut 17,000 jobs in January — the first such reduction in more than four years and a fresh sign that the economy is in danger of stalling.

The Labor Department’s report, released Friday, also showed that the unemployment rate dipped slightly to 4.9 percent, from 5 percent, as the civilian labor force shrank slightly.

Job losses were widespread. Manufacturers, construction firms and a variety of professional and business services eliminated jobs in January — reflecting the toll of the housing and credit debacles. The government cut jobs, too. All those cuts swamped job gains in education, health care, retailing and elsewhere.

Wage growth also slowed, another indication that employers are tightening their belts amid the economic slowdown.

Pointing to the drop in jobs, President Bush prodded Congress to quickly pass an economic rescue package. The president said there are “serious signs that the economy is weakening, and we’ve got to do something about it.”