The U.S. job market showed mixed signals in November, as employers added 64,000 jobs, exceeding forecasts, while revised figures for October revealed a steep loss of 105,000 positions, according to new data from the Labor Department. The unemployment rate rose to 4.6%, its highest level in more than four years, suggesting the labor market is continuing to cool amid economic uncertainty.
The latest employment report, delayed for six weeks due to the federal government shutdown, provides the first comprehensive snapshot of hiring activity since early fall. It paints a picture of cautious employers and a slowing economy impacted by tariffs, inflationary pressures, and the rapid integration of artificial intelligence.
“Businesses are not hiring as they adjust to tariffs, uncertain conditions, and AI,” said Heather Long, chief economist at Navy Federal Credit Union. “The result is about 700,000 more unemployed Americans than there were a year ago.”
Key Figures
Economists surveyed by FactSet had projected payroll growth of around 40,000 jobs in November, meaning the actual figure exceeded expectations despite broader signs of weakness. The Labor Department also confirmed a major contraction in October’s employment numbers, with the federal government shedding 162,000 positions that month due to deferred resignations following the shutdown.
Revisions to earlier data showed job growth for August and September was 33,000 lower than previously reported, deepening concerns that the economy’s hiring momentum has slowed more sharply than initially thought.
Private-sector indicators had already hinted at a downturn: ADP data earlier this month showed a 32,000 job decline in November, while outplacement firm Challenger, Gray & Christmas reported more than 1.1 million layoffs across the year, one of the highest totals since the pandemic.
Expert Reactions
Federal Reserve officials acknowledged the labor market’s gradual cooling but stressed that the decline appears controlled rather than catastrophic.
“This has been an ongoing, gradual process, without signs of a sharp rise in layoffs or other indications of rapid deterioration,” said John C. Williams, president of the Federal Reserve Bank of New York. “But job growth has been anemic.”
Analysts attributed the rise in unemployment partly to more Americans re-entering the job market in search of work. Still, they cautioned that the data collected during and immediately after the shutdown may not provide a fully accurate picture.
“The report on December’s employment data, released in early January, will likely be a much more meaningful indicator for the Fed when it comes to deciding the near-term policy trajectory,” said Kay Haigh, global co-head of fixed income at Goldman Sachs Asset Management.
Federal Reserve Chair Jerome Powell had earlier warned that October and November data should be viewed with “a somewhat skeptical eye,” acknowledging the potential distortions caused by the shutdown.
The higher jobless rate could nonetheless worry policymakers.
“The larger-than-expected rise in unemployment will likely raise concerns within the Fed,” said Seema Shah, chief global strategist at Principal Asset Management.
The Fed last week cut interest rates by 0.25 percentage points for the third time in a row, signaling growing concern about weakening employment and economic momentum heading into 2026.
