The latest snapshot of the American labour market reveals a continued cooling trend, with the national unemployment rate climbing to its highest point in over four years. Data released Tuesday by the U.S. Bureau of Labor Statistics shows the jobless rate rose to 4.6% in November, up from 4.4% in September. This marks the highest unemployment level since September 2021.
November Jobs Report Shows Tepid Growth
According to the federal report, the U.S. economy added a modest 64,000 non-farm jobs in November. This follows a significant revision for October, which now shows the economy shed 105,000 positions that month. The weak numbers came as a surprise to many analysts; business network CNBC noted economists had largely been expecting a decline after a surprisingly strong addition of 108,000 jobs in September.
A major factor in October's negative figure was a reduction in government payrolls. Deferred layoffs finally materialized, resulting in 162,000 fewer federal employees in October, with an additional 6,000 jobs lost in November. White House Press Secretary Karoline Leavitt pointed to the recent federal government shutdown—the longest in U.S. history—as partly to blame for the sluggish numbers.
Manufacturing Sector and Broader Economic Trends
Drilling into sector-specific data reveals particular softness in goods-producing industries. The U.S. manufacturing sector lost 5,000 jobs in November. This decline occurs amid an ongoing trade war and the imposition of tariffs on imported goods by the Trump administration, policies critics say raise costs for American consumers.
The overall trend for 2025 shows a marked slowdown from a stronger start to the year. While the economy added over 100,000 jobs per month in the first four months, growth has fluctuated and largely followed a downward trajectory since May. Heather Long, chief economist at Navy Federal Credit Union, described the situation starkly to CNBC: "The U.S. economy is in a jobs recession. The nation has added a mere 100,000 in the past six months." She noted that the bulk of recent hiring has been concentrated in healthcare, a sector consistently driven by demographic demands.
Contrasting Views from Washington
Administration officials struck a more optimistic tone, framing the data as momentum building despite inherited challenges. Labor Secretary Lori Chavez-DeRemer stated, "November's jobs report shows our economy continues to gain momentum despite the economic mess President Trump inherited from the Biden administration." She emphasized that job growth is concentrated in the private sector, with federal employment retreating to its lowest level in a decade.
Chavez-DeRemer highlighted that average private sector weekly earnings are on track to rise 4.2% during the president's first year, arguing this provides working families with more purchasing power as wages outpace inflation. The administration's focus, she said, remains on "making life more affordable for all Americans" and building a "Golden Age of economic prosperity."
In her statement, Press Secretary Leavitt echoed this sentiment, asserting that "100% of the job growth has come in the private sector and among native-born Americans—exactly where it should be." She pointed to rising wages, falling prices, and trillions in investment as signs the economy is "primed to boom in 2026."
