U.S. adds 64,000 jobs in November but unemployment rate rises

The U.S. added 64,000 jobs in November and the unemployment rate inched up slightly to 4.6%, the government said Tuesday in a restart of key data reports following the federal shutdown.

The Bureau of Labor Statistics’ report on non-farm payrolls beat Wall Street forecasts of 45,000, buoyed by two sectors.

“Employment rose in health care and construction in November, while [the] federal government continued to lose jobs,” the report said.

The BLS said both the unemployment rate, of 4.6%, and the number of unemployed people, at 7.8 million, were little changed from September but higher than November 2024, when the unemployment rate stood at 4.2% and 7.1 million people were unemployed.

The unemployment rate was 4.4% for September, but the rise in jobs was not fast enough to match a surge in job seekers.

The Labor Department did not release a complete monthly jobs report for October, citing the shutdown that prevented it from collecting necessary data.

However, preliminary data showed a net loss of 105,000 positions in October, driven by massive cuts in government employment as federal workers took delayed resignation deals.

Non-farm payrolls increased by 119,000 for September, far exceeding Wall Street estimates, though hiring has been sluggish overall this year. 

The job market had weakened in August. The report showed a loss of 4,000 positions after downward revisions. 

The BLS is scheduled to release a consumer price index reading on Thursday that will shed light on whether inflation is cooling or persistent.

The Federal Reserve, despite fears of stubborn inflation, opted for three successive rate cuts late this year due to concerns about unemployment.

“We should interpret these numbers cautiously due to shutdown-related data distortions,” Mohamed A. El-Erian, a part-time chief economic adviser at Allianz, said on X. “However, if forced to draw a conclusion, the bottom line is a weakening labor market that warns against an extended Fed rate pause.”

Layoffs have been high this year, and economists say a confluence of factors might be to blame for the hiring morass.

The Trump administration cut many federal government positions and launched a crackdown on the hiring of illegal immigrants, which could bring down the job numbers. Some companies also may be easing off on hiring after a rush to bring in workers in previous years.

Economists say many firms are cost-cutting this year, resulting in layoffs, and the artificial intelligence boom might be replacing some white-collar positions.

Republicans on Tuesday focused on overall job gains for November as proof that their agenda is working.

“We remain committed to building on these gains and making America more affordable for working families,” said Education and Workforce Committee Chairman Tim Walberg, Michigan Republican.

President Trump is predicting a robust 2026 as new tax cuts take effect and companies open new factories to create jobs. But so far, his promised manufacturing boom has failed to materialize. 

The manufacturing sector lost 5,000 positions in November, although construction was up 28,000 jobs, aligning with Mr. Trump’s promotion of new projects.

Mr. Trump says his tariffs, or duties on foreign goods, are forcing major companies to set up shop in the U.S.

Democrats said Tuesday that Mr. Trump’s big bet on tariffs has backfired. 

“Trump’s tariffs — his national sales tax — are further weakening the job market while driving prices higher for families,” said Rep. Brendan Boyle, Pennsylvania Democrat and ranking member on the House Budget Committee. 

Health care added 46,000 jobs in November. It has been the most consistent job-adding sector this year.

Employment in the federal government continued to decrease after Mr. Trump and his Department of Government Efficiency took a hatchet to federal payrolls earlier in the year.

Federal government employment decreased by 6,000 jobs in November, following a dramatic drop of 162,000 in October, as employees who had taken deferred resignation deals were removed from the payroll.

All told, federal employment is down by 271,000 jobs since its peak in January.