New Orleans to axe jobs of 3,000 city workers

SHOCK waves from Hurricane Katrina continued to batter New Orleans as some 3,000 city workers - half the workforce - faced the losing their jobs as the city has no money to pay them.

Mayor Ray Nagin announced the layoffs as authorities called off the search for storm victims as former US President Bill Clinton toured devastated areas.

"It is with great sadness that we announce that we were unable to hold onto some of our dedicated city workers," Nagin said.

"After weeks of working to secure funds to make payroll, the City of New Orleans today announces it has been forced to lay off up to 3,000 classified and unclassified city workers as a result of the financial constraints in the wake of Hurricane Katrina."

Nagin said police, firefighters and other emergency workers would probably not be affected in the layoffs, which are planned over the next two weeks. He said the cutbacks will save the city between $5 million and $8m a month.

Separately, Nagin said authorities "have now started to move aggressively into a temporary housing mode", working with federal authorities "to identify lots and establishments that businesses have where they are willing to put temporary trailers up".