The US labor market added 64,000 jobs in November, according to employment data released on Tuesday, surpassing consensus forecasts of approximately 40,000 new positions. The gains helped recover ground lost during October, when the economy shed 105,000 jobs. Despite the stronger-than-expected November performance, the unemployment rate climbed to 4.6%, marking a four-year high and reflecting underlying concerns about economic strength.
The jobs report was delayed due to a 43-day federal government shutdown, which also prevented the full release of October employment figures. Revisions to prior months showed that August and September job growth figures were adjusted downward, from an estimated 4,000-job loss to 26,000 and from 119,000 gains to 108,000, respectively. Federal government payrolls declined by 162,000 positions in October and 6,000 in November.
Federal Reserve Chair Jerome Powell cautioned that the labor statistics should be viewed with scruticism given disruptions from the shutdown and data collection gaps. Powell indicated that current payroll figures likely overstate job creation by approximately 60,000 positions monthly and will eventually require correction. He attributed some labor market softness to restrictive immigration policies affecting worker supply.
Data quality concerns have intensified amid leadership disruptions at the Bureau of Labor Statistics. The agency experienced significant staff reductions, declining from 2,058 employees in fiscal year 2024 to proposed levels of 1,851 for fiscal year 2026. Following the termination of BLS Commissioner Erika McEntarfer in August, a replacement nominee was withdrawn in late September due to qualification concerns, leaving the agency without permanent leadership.
Economists assessed that the jobs report was unlikely to prompt additional interest rate cuts from the Federal Reserve in January, with some analysts noting the pace of labor market deterioration appeared insufficient to spur immediate policy changes despite ongoing weakness in employment conditions.
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