U.S. Adds 64,000 Jobs in November; Unemployment Hits 4.6%/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The U.S. economy added 64,000 jobs in November despite lingering uncertainty and recent federal cuts. Unemployment rose to 4.6%, reflecting labor market softness following October’s 105,000 job loss. Economists point to trade policies and AI disruptions as major hiring headwinds.
U.S. November Jobs Report: Quick Looks
- November job growth reached 64,000, exceeding low expectations.
- October saw a steep drop of 105,000 jobs due to federal buyouts.
- Unemployment rate climbed to 4.6%, the highest since 2021.
- Labor Department reports were delayed by a 43-day government shutdown.
- Trump administration’s agency cuts and tariffs add labor uncertainty.
- Artificial intelligence and automation further slow new hiring.
- Fed cut interest rates by 25 basis points last week.
- Revised data shows 911,000 fewer jobs were created than earlier estimated.
- Fed Chair Powell warns labor market risks are “significant.”
- Analysts believe hiring may have flatlined since spring.
Deep Look
U.S. Job Growth Beats Expectations in November, But Labor Market Shows Signs of Strain
The U.S. labor market showed mild signs of resilience in November, adding 64,000 jobs and beating economists’ modest expectations. But the underlying data continues to highlight a broader slowdown in hiring momentum, with the unemployment rate ticking up to 4.6% — the highest level since 2021.
The Department of Labor’s delayed report, released Tuesday after a 43-day federal government shutdown, provides a snapshot of a workforce in flux, shaped by shifting economic policies, technological disruption, and public-sector downsizing.
October was particularly rough, with payrolls falling by 105,000. Much of that decline was driven by over 150,000 federal workers exiting under buyout offers as part of President Donald Trump’s initiative to significantly reduce the federal workforce. Most of those departures occurred at the end of September and showed up in October’s figures. The shutdown, which also hindered data collection, left several metrics incomplete, including October’s unemployment rate.
Trump Policies Add to Labor Uncertainty
Analysts say the labor market is being pulled in multiple directions. On one side are Trump’s expansive import tariffs, which have raised costs across key industries. These import duties — described by economists as “shock tariffs” — are especially affecting lower- and middle-income households by pushing up consumer prices and dampening spending.
On the other side is a dramatic restructuring of the federal government. October’s job losses reflect the first wave of federal downsizing under Trump’s Department of Government Efficiency (DOGE), spearheaded by Elon Musk. The agency led a controversial effort to offer deferred buyouts and reduce payrolls across government departments.
Evercore ISI estimates 150,000 federal employees accepted buyouts, with roughly 100,000 leaving by October 1 and another 50,000 expected to exit by early 2026.
Job Creation Slowing Sharply Since Spring
While November’s 64,000 jobs beat analysts’ forecasts, the number pales in comparison to pre-2023 levels. During the COVID-19 recovery boom (2021–2023), the economy was adding an average of 400,000 jobs per month. That figure has fallen to just under 60,000 in recent months.
September’s benchmark revision showed a staggering 911,000 fewer jobs were created between March 2022 and March 2023 than initially reported. That means employers averaged just 71,000 jobs a month — not the previously reported 147,000.
Fed Chair Jerome Powell, addressing the revised data last week, cautioned that the labor market “has significant downside risks.” He noted that if expected downward revisions hold, job creation could have been flat or even negative since April 2025.
Uncertainty in Hiring: AI and Automation Weigh In
Employers remain cautious, not just because of economic policy but also due to rapid technological changes. The rise of artificial intelligence and automation is causing businesses to rethink workforce strategies.
“We’re seeing a freeze,” said Matt Hobbie, VP at HealthSkil, a staffing firm in Pennsylvania. “Companies are stuck — unsure whether to hire, automate, or wait.”
The impact is especially visible in logistics and transportation sectors, where automation is replacing manual labor. This trend is contributing to what some economists call a “quiet contraction,” where fewer jobs are created, even if layoffs remain modest.
Federal Reserve Remains Divided Over Next Steps
In response to signs of labor market weakness, the Federal Reserve lowered its benchmark interest rate by 25 basis points last week, bringing it to a range of 3.5%–3.75%. However, the vote wasn’t unanimous — three board members dissented, the highest level of disagreement in six years.
Some members are concerned about cutting rates while inflation remains above the Fed’s 2% target. However, Powell suggested further rate cuts may be needed if labor conditions deteriorate further. Trump-appointed Fed Governor Stephen Miran voted for a larger rate cut, aligning with the president’s calls for looser monetary policy.
Inconsistent Data Challenges Policymakers
The delayed release of employment figures due to the government shutdown has added further complexity. The Labor Department was unable to release October’s unemployment rate or collect data from households, prompting methodological changes in November’s estimates.
According to the Bureau of Labor Statistics, November’s labor force estimates may have “slightly higher variances than usual” due to the replacement of more households in the survey sample and modified weighting techniques.
Some economists have warned that these adjustments could artificially inflate the unemployment rate in the short term.
Households Losing Confidence in Job Prospects
Surveys suggest that Americans are growing more pessimistic about job opportunities. With employers pulling back on new hires and job seekers facing fewer openings, many are left in limbo.
The National Federation of Independent Business (NFIB) recently reported that a growing number of small businesses are holding off on hiring plans. Higher input costs, weaker demand, and policy instability were cited as key reasons.
Looking Ahead: More Revisions Coming
The Labor Department is expected to publish its final benchmark revision to payroll data in February, alongside January’s jobs report. Until then, economists warn that monthly data may continue to be volatile and should be interpreted cautiously.
Though November’s modest rebound offers a glimmer of stability, it does little to ease concerns about the underlying strength of the labor market heading into 2026. With ongoing policy shifts, rising automation, and economic uncertainty, the path ahead for American workers remains anything but clear.
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