US Adds 64,000 Jobs in November After Losing 105,000 in October; Unemployment Hits 4.6%

The United States labour market posted contrasting figures for October and November following delayed data releases caused by a 43-day federal government shutdown. November saw a gain of 64,000 jobs, exceeding economists’ forecast of 40,000, while October recorded a loss of 105,000 positions.

The unemployment rate climbed to 4.6%, the highest since 2021, reflecting growing uncertainty in the economy. The Labour Department also revised August and September payrolls downward by 33,000 jobs.

Shutdown Disruptions and Reporting Delays

The Labour Department confirmed that jobs reports for September, October, and November were delayed due to the prolonged government shutdown. The September report was released on November 20, seven weeks late, while October and November figures were published together on December 16.

October’s unemployment rate was not calculated because of data gaps during the shutdown. These delays have complicated economic assessments for policymakers and businesses.

October Job Losses Driven by Federal Workforce Cuts

October’s job losses were largely driven by a sharp decline in federal employment, with around 162,000 workers exiting their roles. Many of these departures took place at the end of the fiscal year on September 30.

The reductions followed payroll cuts linked to administrative directives. The Labour Department stated that these cost-cutting measures had a significant impact on overall employment figures for the month.

November Job Gains and Broader Economic Context

In November, hiring rebounded modestly with 64,000 jobs added, surpassing expectations of 40,000. Overall momentum remains weak amid uncertainty over trade policies and elevated borrowing costs.

Businesses are retaining existing staff but remain cautious about new hiring as they adapt to technological changes and unpredictable tariff measures. The unemployment rate’s rise underscores ongoing challenges in the labour market.

Federal Reserve Response and Policy Debate

Concerns over slowing job growth prompted the Federal Reserve to cut its benchmark interest rate by 0.25 percentage points last week, marking the third reduction this year. The decision faced three dissenting votes, the highest in six years, reflecting divisions within the Fed.

While some officials advocate for further easing to support employment, others remain cautious due to inflation staying above the 2% target. Policy uncertainty continues to weigh on economic outlooks.

Read More: India's Unemployment Rate Falls to 5.2%, but Urban Joblessness Rises to 6.9% in Q2FY26.

Conclusion

The latest employment data highlights a fragile labour market, shaped by federal workforce reductions, delayed reporting, and broader economic headwinds. While November’s job gains offer some relief, rising unemployment and uneven hiring trends point to persistent challenges.

Policymakers face a complex balancing act as they navigate interest rate decisions amid incomplete data and heightened uncertainty. The coming months will reveal whether these measures can stabilise the labour market.

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