WASHINGTON (AP) - Recession-battered employers eliminated 598,000 jobs in January, the most since the end of 1974, and catapulted the unemployment rate to 7.6 percent. The grim figures were further proof that the nation's job climate is deteriorating at an alarming clip with no end in sight.

The Labor Department's report, released Friday, showed the terrible toll the drawn-out recession is having on workers and companies. It also puts even more pressure on Congress and President Barack Obama's administration to revive the economy through a stimulus package and a revamped financial bailout plan, both of which are nearing completion.

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Consumer credit falls more than expected in Dec.

WASHINGTON (AP) - Consumer borrowing fell for a third straight month in December, the longest stretch in 17 years, as households cut spending amid a steep recession and rising job layoffs.

The Federal Reserve said Friday that consumer borrowing dropped at an annual rate of 3.1 percent in December. The $6.6 billion decline was nearly double what analysts expected. It followed an $11 billion drop in November that was the biggest monthly plunge on record going back to 1943.

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Wall Street shrugs off January job losses of 598K

NEW YORK (AP) - Wall Street has had another big rally as investors bet the government will take some big steps to help the economy.

All the major indexes rose more than 2 percent Friday, including the Dow Jones industrial average, which rose more than 200 points as investors looked past another bleak jobs report and awaited word from Washington about an economic stimulus plan and changes to the government's financial rescue program.

The Dow industrials rose 217.52, or 2.70 percent, to 8,280.59.

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Oil near $40 again on dismal jobs report

NEW YORK (AP) - Oil prices sank below $41 a barrel Friday as the government reported that U.S. employers slashed more than a half million jobs last month, the most in 35 years.

Light, sweet crude for March delivery dropped a dollar to settle at $40.17 a barrel on the New York Mercantile Exchange. Retail gas prices rose to almost $2 a gallon as refineries took units temporarily off-line for seasonal maintenance.

Oil traders see layoffs as an instant drag on oil demand. People have less need for gasoline when they no longer have a daily commute. They also stop buying toys, nonstick pans, raincoats and millions of other products that are made with petroleum.

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Delphi seeks to end health benefits for retirees

DETROIT (AP) - Troubled auto parts supplier Delphi Corp.