WASHINGTON - Thousands of job cuts, a new plan to save the U.S. auto industry, and a deadline for banks seeking a life raft of their own. Those are the new developments in the struggle to get the nation's economy back on track.

There has also been more bad news on the job front as another big financial services company struggling to stay afloat announced the biggest layoff since the beginning of this economic crisis. Citigroup opened the floodgates and unleashed a wave of pink slips, sending thousands to the unemployment line. The 52,000 jobs Citigroup is slashing signals more trouble for an already ailing U.S. economy.

Economists are now predicting the unemployment rate will climb to eight percent by this time next year and the troubled auto industry could take the biggest hit.

On Capitol Hill, lawmakers are pushing for an aid package before the inauguration to keep the big three automakers in business. "We should not be lame nor should we duck the biggest issue facing America," said Senator Barbara Mikulski, D-Md.

"We only think taxpayer dollars should go to companies that can show viability and a willingness to make tough decisions to restructure themselves," said White House spokesperson Dana Perino.

There now is no immediate help for the auto industry, but the Treasury Department today said the 3,800 banks seeking help to stay afloat have until December 8, 2008 to apply for their share of the $700 billion rescue fund.