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

The U.S. added 64,000 jobs in November, but the unemployment rate rose to its highest level since September 2021, the government said Tuesday in a restart of key data reports that raised concerns about sluggish hiring in multiple sectors.

The Bureau of Labor Statistics’ report on nonfarm payrolls beat Wall Street forecasts of 45,000 job gains. However, hiring was boosted by two sectors, health care and construction, while others reported losses, continuing a sluggish year.

The agency reported that the unemployment rate, at 4.6%, and the number of unemployed people, 7.8 million, remained unchanged from September, although those figures were higher than in November 2024, when the unemployment rate stood at 4.2% and 7.1 million people were unemployed.

The unemployment rate was 4.4% in September, but the job increases were not sufficient to match the surge in job seekers.

The current reading is the highest unemployment rate since the first year of the Biden administration, when the country was struggling to recover from the COVID-19 crisis.

Democrats signaled that they would keep pounding Mr. Trump and congressional Republicans on the economy heading into next year’s midterm elections.

“Donald Trump’s reckless policies have turned the job market into a living hell,” Democratic National Committee spokeswoman Kendall Witmer said. “As working families grapple with sky-high prices — from groceries to holiday essentials — they’re also facing mass layoffs and rising unemployment, adding to an ever-growing list of worries about how to make ends meet in Trump’s economy.”

The White House urged people to dig a little deeper into the report, as the unemployment rate factors in people who are eager to work.

“People who weren’t looking for work under Biden’s administration are getting out there and looking for work in the Trump administration. That’s exactly what we want,” Vice President J.D. Vance said.

The Labor Department did not release a complete monthly jobs report for October, citing the government 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.

“That is, in many ways, the entire story,” Mr. Vance said. “We want to fire bureaucrats and hire these great Americans out here.”

He said job growth is concentrated in the private sector among American-born workers.

Nonfarm payrolls increased by 119,000 for September, far exceeding Wall Street estimates.

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

The Bureau of Labor Statistics is scheduled to release a consumer price index reading Thursday. It will provide insight into whether inflation is cooling or persisting.

The Federal Reserve, despite fears of stubborn inflation, opted for three successive rate cuts late this year because of 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 may be easing off on hiring after a rush to bring in workers in previous years.

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

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

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

Mr. Vance said Democrats blasting the Trump economy are missing the mark because inflation soared during the Biden years preceding the president’s term.

“It was because of them,” Mr. Vance said at Uline Shipping Facilities in Lower Macungie Township, near Allentown, Pennsylvania. “It’s a little bit like Charles Manson criticizing violent crime.”

The Trump administration predicts a robust 2026 as new tax cuts take effect and companies open factories to create jobs.

“If more people have more money to spend in their pocket, that’s good for businesses, that’s good for families, that’s good for everybody,” Mr. Vance said.

So far, Mr. Trump’s promised manufacturing renaissance 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 companies to make their products 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.

Employers in 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 made cuts to federal payrolls earlier in the year.

Federal government employment decreased by 6,000 jobs in November after 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.

White House National Economic Council Director Kevin Hassett said the federal workforce dynamic likely explains the parallel increases in the unemployment rate and labor participation rate, which reflect those who are employed or looking for work.

“Probably what’s going on is the 250,000 federal government workers who took the buyout are staying in the labor force and looking for work,” he said.