Unemployment Hits Four-Year High in November Amid Mixed Job Market Signals
The unemployment rate in the United States rose to 4.6% in November, marking a four-year high and an increase from 4.4% in September, according to the Labor Department.
November payrolls showed a gain of 64,000 jobs, contrasting with October’s decline of 105,000 jobs, which was driven by a significant reduction of 162,000 federal government roles. The release of this data was delayed due to a 43-day federal government shutdown, with October figures released alongside November's. Additionally, payroll numbers for September and August were revised downward from initial estimates.
Sector analysis revealed growth in health care, which added 46,000 jobs, including 11,000 in nursing and residential care. Construction employment increased by 28,000 jobs. However, transportation and warehousing saw a decline of 18,000 jobs, and manufacturing employment fell by 5,000.
Long-term unemployment increased to 1.9 million in November, up from 1.8 million in September and 1.7 million a year earlier, underscoring ongoing labor market fragility. This was illustrated by a software engineer in Virginia, who reported continued long-term unemployment and a protracted job search.
In the context of Federal Reserve policy, the central bank cut interest rates by 0.25 percentage points last week. Projections largely anticipate one rate cut in 2026. Policymakers are weighing the effects of a weaker labor market against inflation concerns. Federal Reserve Chair Jerome Powell is likely skeptical of the employment data due to distortions caused by the shutdown and immigration policy effects.
