The US labor market expanded more than anticipated during November, with payroll gains of 64,000 jobs according to data released on Tuesday. This represented a recovery from the prior month’s decline of 105,000 jobs in October. The November figure surpassed the consensus forecast among economists of approximately 40,000 jobs added.
Despite the stronger-than-expected job growth, labor market indicators suggested underlying weakness. The unemployment rate reached 4.6% last month, marking the highest level in four years. Earlier data revisions also pointed to softer employment trends, with August and September growth figures downgraded from the originally reported estimates.
The delay in releasing these figures stemmed from a federal government shutdown lasting 43 days, which prevented the Bureau of Labor Statistics from releasing full October data and postponed November’s report. Federal employment declined by 162,000 positions in October and an additional 6,000 in November. Federal Reserve Chair Jerome Powell cautioned that the jobs data should be viewed with skepticism given the data collection gaps and suggested the reported figures likely overstate actual labor market strength by approximately 60,000 jobs monthly.
Private sector employment metrics from ADP painted a less optimistic picture, with private employers shedding about 32,000 jobs in November following gains of 47,000 in October. Economists indicated the latest report was unlikely to prompt additional interest rate cuts at the Federal Reserve’s upcoming meeting, with analysts noting that while the labor market remained weak, deterioration was occurring at a pace insufficient to trigger immediate policy easing.
The labor statistics agency faces institutional challenges, including leadership vacancies and staffing reductions. The BLS lost approximately 207 employees from fiscal year 2024 to proposed levels for fiscal year 2026, representing a 20% decline in total staff.
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