Unemployment rate fell from previous month to 4.8 percent.

Washington ? Dangerous cracks in the nation’s job market are deepening. Employers slashed jobs by the largest amount in five years, and hundreds of thousands of people dropped out of the labor force – ominous signs that the country is falling toward a recession or has already toppled into one.

For the second straight month, nervous employers got rid of jobs nationwide. In February, they sliced payrolls by 63,000, even deeper than the 22,000 cut in January, the Labor Department reported Friday.

The grim snapshot of the country’s employment climate underscored the heavy toll the housing and credit debacles are taking on companies, jobseekers and the economy as a whole.

“It sounds like the recession bell is ringing for the U.S. economy, although it is still faint,” said Stuart Hoffman, chief economist at PNC Financial Services Group.

On Wall Street, stocks tumbled. The Dow Jones lost 146.70 points, a little more than 1 percent to close at 11,893.69. The Dow was down 370 for the last two days of the week.

The worsening situation will prompt the Federal Reserve to cut a key interest rate deeply – perhaps by as much as three-quarters of a percentage point – at its next meeting March 18, or possibly sooner, to help brace the teetering economy, analysts predicted.

The shower of pink slips was widespread. Factories, construction companies, mortgage brokers, real-estate firms, retailers, temporary-help firms, child day-care providers, hotels, educational services, accounting firms and computer designers were among those shedding jobs. All those cuts swamped job gains at hospitals and other health care sites, bars and restaurants, legal services and the government.

“Losing a job is painful, and I know Americans are concerned about our economy; so am I,” said President Bush. “It’s clear our economy has slowed.”