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.