Employers added 64,000 jobs in November, but the unemployment rate jumps to highest in four years

Employers across the U.S. added 64,000 jobs in November, beating economists’ forecasts, new government data shows, even as fresh October figures revealed a loss of 105,000 jobs, a sign the labor market remains under pressure.

The unemployment rate in November rose to 4.6%, the highest level since September 2021.

The November employment report offers a fresh picture of the labor market after a six-week blackout in official data caused by the recent government shutdown.

By the numbers

Economists had forecast payroll gains of 40,000 jobs in November, according to a poll by FactSet. 

The Labor Department on Tuesday also released partial employment data from October, which shows a loss of 105,000 jobs that month. Analysts had expected the October data might be weak, due to federal deferred resignation buyout offers, according to FactSet.

Job growth for August and September was also revised down by a collective 33,000.

The government’s official employment data for October and November had been delayed due to the 43-day government shutdown, which ended in last month.

In the absence of federal data, economists at the Federal Reserve and on Wall Street had been monitoring alternative sources, which have signaled ongoing headwinds in the labor market. For instance, ADP earlier this month said private-sector employers in the U.S. cut 32,000 jobs in November, while outplacement firm Challenger, Gray & Christmas has tracked more than 1.1 million layoffs so far this year.

Economic uncertainty has led workers to stay put and employers to pull back on hiring, creating a difficult situation for job seekers, especially those early in their careers.

The labor market is slowly cooling, Federal Reserve Bank of New York president John C. Williams said in a speech Monday.

“I should emphasize that this has been an ongoing, gradual process, without signs of a sharp rise in layoffs or other indications of rapid deterioration,” Williams said. But, he added, “Job growth has been anemic.”