Protesters say the president has betrayed them

Students, workers and teachers participated, carrying banners, whistles and saucepans.

In Lima, hundreds of helmeted riot police looked on at the protests, which correspondents say could be the biggest since President Alejandro Toledo took power two years ago.

A wave of strikes - some now in their fourth week - has thrust the unpopular president into perhaps his most serious crisis so far.

Workers are demanding wage increases President Toledo promised them during his election campaign, but which he has now agreed with the International Monetary Fund to shelve.

'Back to barracks'

"This is a national day of struggle in which we will press for workers' demands to be met... and to reject the state of emergency... to send soldiers back to their barracks," said Juan Jose Gorriti, leader of the umbrella General Confederation of Peruvian Workers (CGPT) which called the protests.

He said the state of emergency was not acceptable in a democratic country.

Strikes mean millions of children have stayed away from school

Marches were also expected in other major cities, including Iquitos, 1,000 kilometres north of Lima.

In Peru's second city, Arequipa, local leaders called a general strike in support of the protests.

The government says the protests are illegal under the 30-day state of emergency imposed to contain strikes by farm, judiciary and health workers - and about 280,000 teachers.

"Without a doubt, leaders and participants are not only challenging the government's regulations but breaking the law," Interior Minister Alberto Sanabria told local radio.

Student killed

He said Peruvian forces would act "even-handedly but firmly" to keep order.

One student was killed and about a dozen people were injured last Thursday in clashes with the police and with the military, which has been put in control of about half of the country.

Monday also saw protests, but they were mainly peaceful.

The government-appointed mediator in the conflict, well-known cleric Bishop Luis Bambaren, earlier called for protests to be suspended, saying the government and teachers were close to agreement after meeting until the early hours of Tuesday.