The US job market showed signs of softening in November, as the unemployment rate climbed to a four-year high of 4.6%, up from 4.4% in September, according to the latest Labor Department report. Despite this, employers added 64,000 jobs last month, exceeding many economists’ expectations.
October had seen a notable decline of 105,000 jobs, largely due to a reduction of 162,000 federal positions, reflecting earlier government efforts to cut jobs. The November report, delayed by the US government shutdown, also revised the figures for September and August, revealing fewer job additions than initially estimated.
Economists say the report paints a mixed picture. While it highlights weakening employment conditions, it is unlikely to resolve the Federal Reserve’s internal debate over interest rates. Policymakers continue to juggle a slowing job market against persistent inflation pressures.
Last week, the Fed reduced interest rates by a quarter-point, marking its third cut in 2025, aiming to stimulate the labor market. Current projections suggest Fed officials anticipate at least one more rate cut in 2026. However, further signs of labor market weakness may prompt additional action.
