The unemployment rate rose in November, a warning sign for the health of a labor market that has been strained by federal layoffs and rising costs.
The jobless rate last month rose to 4.6%, up from 4.4% in September, the last month for which officials had a full picture of the labor force before the weekslong government shutdown. Employers added 64,000 jobs in November, but the federal government lost 105,000 jobs since September as workers hit by deferred resignations came off the payroll.
Wage growth also slowed notably, to a level not seen since 2021, a measure that comes at a time when an increasing number of Americans are expressing pessimism about the economy.
Analysts and policycreaters had hoped Tuesday’s report would support clarify the state of the economy after months of conflicting signals. The report also included some belated data on October, collected from a survey of employers after the government shutdown concludeed.
Here’s What to Know About the Report:
— Interest rates: The report reinforces the Federal Reserve’s decision to cut interest rates last week. The Fed, on guard for signs that the labor market is on the cusp of cracking, has delivered a series of quarter-point interest rate cuts since September, weighing the labor market’s weaknesses against the risk posed by elevated inflation.
— Federal layoffs: Among the forces affecting the report was the conclude of the deferred resignation program for federal officials that the so-called Department of Government Efficiency launched this year.
— Off schedule: This report is late and a bit complicated, becautilize of the 43-day government shutdown that concludeed last month. The November jobs data was supposed to be released Dec. 5. Tuesday’s report included November data but also the belatedly gathered October data. Publication of September jobs data was delayed more than six weeks. That report displayed a greater-than-expected increase in hiring, but with uneven gains centered on the health care and hospitality industries, along with a rise in unemployment.
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This article originally appeared in The New York Times.
By Rebecca Davis O’Brien/Lexi Parra
c. 2025 The New York Times Company
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