The United States added 64,000 jobs in November but lost 105,000 jobs in October, according to delayed government reports released Tuesday. The figures reflect significant federal workforce reductions following cutbacks by the Trump administration.
The unemployment rate rose to 4.6% in November, its highest level since 2021, underscoring a labor market that continues to lose momentum.
Federal Layoffs Drive Job Losses
The October job losses were largely driven by a 162,000 decline in federal employment, as many workers resigned at the end of fiscal year 2025 on Sept. 30. The departures followed pressure from billionaire Elon Musk’s push to shrink US government payrolls, according to the report.
Labor Department revisions also reduced payroll counts for August and September by a combined 33,000 jobs.
Hiring Slows Despite Beating Forecasts
While the November job gains exceeded economists’ expectations of 40,000, hiring overall has weakened. Since March, job creation has averaged 35,000 per month, down sharply from 71,000 in the year ending in March.
Economists attribute the slowdown to uncertainty surrounding President Donald Trump’s tariffs and the lingering impact of high interest rates imposed by the Federal Reserve in 2022 and 2023 to curb inflation.
Shutdown Delays Complicate Fed Decisions
Both the October and November jobs reports were released late due to the 43-day federal government shutdown, complicating policymaking at the Federal Reserve. The delayed data has deepened divisions among Fed officials over whether further interest rate cuts are needed to support the labor market.
Last week, the Fed cut its benchmark interest rate by a quarter percentage point, marking the third cut this year. Three officials dissented—the most in six years—with two voting to hold rates steady and Stephen Miran, a Trump appointee, voting for a larger cut.
Economists Warn of Continued Softness
Samuel Tombs, chief US economist at Pantheon Macroeconomics, said the labor market “remains weak,” but added that the pace of deterioration may be too slow to prompt another rate cut at the Fed’s next meeting on Jan. 27–28.
Fed Chair Jerome Powell also warned that hiring may have been overcounted by about 60,000 jobs per month since spring, suggesting further downward revisions ahead.
Wages, Sectors, and Jobseekers
Average hourly earnings rose just 0.1% in November, the smallest increase since August 2023. Year-over-year wage growth slowed to 3.5%, the lowest since May 2021.
Health care led job creation with 46,000 new positions, followed by construction with 28,000 jobs added. Manufacturing, however, shed 5,000 jobs, marking its seventh consecutive monthly decline.
Economists also point to automation and artificial intelligence as growing pressures on employment, particularly in logistics and transportation sectors.
Workers Feel the Strain
For many jobseekers, the slowdown has made finding work increasingly difficult. Amy Beckrich, a 54-year-old former human resources worker in Minnesota, said she has applied for more than 100 jobs since losing her position in May.
“I feel like the hiring system is broken,” Beckrich said. “The human factor has completely disappeared.”
