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The United States added 64,000 jobs in November, a rebound after a steep loss of 105,000 in October, according to delayed Labor Department reports. The October decline was driven largely by departures of federal workers following cutbacks under the Trump administration. The unemployment rate rose to 4.6 per cent in November, marking its highest level since 2021.

The drop in October reflected a 162,000 reduction in federal workers, many of whom resigned at the end of fiscal year 2025 on September 30 amid billionaire Elon Musk’s cuts to US government payrolls. Labor Department revisions also reduced August and September payrolls by 33,000 jobs.

Hiring momentum has slowed due to uncertainty over US President Donald Trump’s tariffs and the lingering impact of high interest rates set by the Federal Reserve in 2022-2023 to combat inflation. Since March, job creation has averaged just 35,000 per month, compared to 71,000 a year earlier.

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Both October and November job reports were delayed by the 43-day federal government shutdown, complicating Fed deliberations on interest rate policy. Policymakers remain divided over whether the labor market needs further support.

Concerns about the labor market prompted the Fed to cut its benchmark interest rate by a quarter percentage point last week for the third time this year. However, three Fed officials dissented—the highest number in six years. Two preferred keeping rates unchanged until inflation falls below the 2 per cent target, while Trump-appointed Stephen Miran voted for a larger cut.

The unemployment rate, though still modest historically, has risen from a 54-year low of 3.4 per cent in April 2023. The labor force grew by 323,000 from September, though October’s rate was unavailable due to the shutdown.

Federal Reserve Chair Jerome Powell had noted that hiring may have been overcounted by roughly 60,000 jobs per month since spring. “You can say that the labor market has continued to cool gradually, maybe just a touch more gradually than we thought,” Powell said.

Average hourly earnings increased only 0.1 per cent from October, the smallest gain since August 2023. Year-over-year pay rose 3.5 per cent, the lowest since May 2021. Health care employers added 46,000 jobs in November, making up more than two-thirds of private sector gains. Construction employment grew by 28,000 jobs, while manufacturing lost 5,000 positions for the seventh consecutive month.

Total nonfarm payroll employment changed little in November (+64,000) and has shown minimal net change since April, the US Bureau of Labor Statistics reported. In November, employment rose in health care and construction, while federal government jobs continued to decline.

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In November, the unemployment rate remained at 4.6 per cent with 7.8 million people unemployed, little changed from September. Teen unemployment rose to 16.3 per cent, while rates for adult men and women, Whites, Blacks, Asians, and Hispanics showed little change. The labor force participation rate stood at 62.5 per cent, and the employment-population ratio was 59.6 per cent, largely unchanged over the year. Part-time workers seeking full-time employment rose to 5.5 million, up 909,000 from September.

Total nonfarm payroll employment edged up by 64,000 in November, with health care adding 46,000 jobs and construction 28,000. Federal government employment fell by 6,000, following a 162,000 drop in October, reflecting deferred resignations.

Employment in other sectors, including manufacturing, transportation, and professional services, showed little change. Average hourly earnings for private-sector employees rose by 5 cents to $36.86, while the average workweek remained steady at 34.3 hours.

August and September payrolls were revised down by a combined 33,000 jobs. October data is published for the first time this month due to the federal shutdown, highlighting the impact of delayed reporting on official statistics.