The US unemployment rate climbed to 4.6% in November 2025, marking the highest level since September 2021 and signaling growing concerns about the nation's economic trajectory. The Bureau of Labor Statistics released delayed data showing employers added just 64,000 jobs last month, slightly exceeding economists' expectations of 45,000.
The report, postponed by more than a week due to a federal government shutdown, painted a stark picture of labor market deterioration. October's revised figures revealed a devastating loss of 105,000 jobs, marking the third instance of negative job growth in six months.
Government Layoffs Drive October Collapse
Federal workforce reductions accounted for the bulk of October's hemorrhaging, with government employment plunging by 162,000 positions. Those previously delayed layoffs from earlier in 2025 finally materialized, creating the steepest monthly decline in years.
November saw an additional 6,000 government jobs eliminated, continuing the downward trend. The persistent cuts reflect broader fiscal pressures facing federal agencies amid budget constraints.
Healthcare and Construction Provide Bright Spots
Health care emerged as November's strongest sector, adding 46,000 jobs in line with its 12-month average of 39,000 monthly gains. Ambulatory health care services led with 24,000 new positions, while hospitals and nursing facilities contributed 11,000 each.
Construction employment grew by 28,000, driven primarily by nonresidential specialty trade contractors who added 19,000 jobs. Social assistance also trended upward with 18,000 new positions, predominantly in individual and family services.
This development echoes concerns raised in previous economic analyses, including warnings about inflation complicating the Federal Reserve's situation as policymakers balance employment and price stability.
Transportation and Retail Sectors Struggle
Transportation and warehousing shed 18,000 jobs in November, with courier and messenger services bearing the brunt of losses. Leisure and hospitality contracted by 12,000 positions, while manufacturing dropped 5,000 jobs.
The broader unemployment picture grew more alarming when factoring in discouraged workers and those involuntarily working part-time. This comprehensive metric surged to 8.7%, the highest since August 2021, according to federal employment data.
Wage Growth Decelerates to 2021 Levels
Perhaps most concerning for workers, wage increases in November slowed to levels not seen since 2021, when the economy was still recovering from the coronavirus pandemic. More individuals reported working part-time despite seeking full-time employment, or indicated they wanted jobs but weren't actively searching.
The unemployment rate's climb from 4.4% in September to 4.6% in November exceeded market expectations. The report also revised August figures downward by 22,000, reflecting a deeper loss of 26,000 jobs, while September estimates were cut by 11,000.
Economic Implications and Federal Response
With 7.8 million Americans now unemployed, questions mount about the administration's economic policies and their impact on job creation. The Trump administration's approach to economic reporting has faced scrutiny as labor market conditions deteriorate.
Youth unemployment reached 10.6% in November, up from 10.4% previously, while long-term unemployment edged to 1.11% from 1.06%. These figures suggest deeper structural challenges beyond temporary disruptions caused by the government shutdown.
The delayed release of critical economic data due to federal funding lapses has raised concerns among economists about timely policymaking. Markets responded cautiously to the report, weighing the modest job gains against the concerning unemployment trajectory and wage stagnation.
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