The US labor market added 64,000 jobs in November, exceeding economist expectations of approximately 40,000 new positions, according to official data released on Tuesday. The same report indicated that 105,000 jobs were lost in October. The November gains partially offset employment declines from the previous month and reflected some recovery from disruptions caused by a federal government shutdown.
Despite the stronger-than-expected November hiring, labor market conditions showed signs of deterioration. The unemployment rate climbed to 4.6%, marking a four-year high. Additionally, previous employment estimates for August and September were revised downward, with August revised from a loss of 4,000 to 26,000 positions and September revised from growth of 119,000 to 108,000 jobs. Federal government employment declined significantly, falling 162,000 positions in October and 6,000 in November.
The delayed release of employment figures and questions surrounding their accuracy have added uncertainty to labor market assessments. Federal Reserve Chair Jerome Powell cautioned that BLS data should be viewed with skepticism while effects from the shutdown continue to work through the statistical system. Powell noted that actual job losses may be worse than reported figures and suggested the payroll data likely contains an overcount of approximately 60,000 positions monthly that will require correction. He attributed some labor market weakness to immigration policies that have reduced labor supply.
The reliability of employment statistics has come under scrutiny following leadership changes at the Bureau of Labor Statistics. The agency experienced significant staffing reductions, with planned headcount declining from 2,058 employees in fiscal year 2024 to a proposed 1,851 for fiscal year 2026. The BLS commissioner position remains vacant following the withdrawal of a nominee in late September amid bipartisan criticism over qualifications. Economists suggested the latest data would likely not prompt the Federal Reserve to adjust interest rates at its next meeting, citing the slow pace of labor market deterioration.
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