U.S. Unemployment Rate Rises To 4.6% As Hiring Stays Sluggish
The U.S. unemployment rate climbed to 4.6% in November, up from 4.4% in September, according to the latest data from the Labor Department.
The increase adds to signs that the U.S. labor market continues to cool after a long period of strength.
While job creation did not collapse, hiring activity remains muted, and revisions to earlier data suggest momentum has weakened further.
Key Takeaways
- The U.S. unemployment rate rose to 4.6%, pointing to ongoing softening in the labor market
- November job growth came in slightly above expectations but stayed modest overall
- Downward revisions to prior months reinforce signs of slowing hiring momentum
Employers added 64,000 jobs in November, slightly exceeding forecasts. However, payroll growth has shown little net change since April, highlighting how hiring has largely stalled over the past several months.
Earlier data was also revised lower. August job gains were cut by 22,000, while September payroll growth was revised down by 11,000. Combined, the two months saw 33,000 fewer jobs than previously reported.
Job Growth Beats Forecasts, But Momentum Remains Weak
Although November’s headline job number topped expectations, the broader picture remains cautious. Payroll growth was concentrated in just a few sectors, while most major industries showed little or no change.
Health care led job gains, adding 46,000 positions, broadly in line with its recent trend. Construction also posted solid growth, adding 28,000 jobs, mainly among nonresidential contractors. Social assistance employment continued to rise as well.
At the same time, transportation and warehousing lost 18,000 jobs, reflecting ongoing weakness in courier and delivery services. Federal government employment also declined again, extending a sharp pullback that began earlier this year.
Revisions and Job Mix Highlight Cooling Labor Conditions
The household survey painted a similar picture of easing conditions. The number of unemployed people stood at 7.8 million in November, higher than a year ago. Short-term unemployment increased, while long-term unemployment remained elevated, accounting for nearly a quarter of all jobless workers.
Another notable development was a sharp rise in part-time employment for economic reasons. About 5.5 million people were working part time because they could not find full-time jobs or had their hours cut, an increase of more than 900,000 since September. This suggests growing caution among employers, even where layoffs remain limited.
Labor force participation and the employment-population ratio were largely unchanged, indicating that the rise in unemployment was driven more by weaker hiring than by people reentering the workforce.
Wages and Hours Show Little Pressure
Wage growth remained modest. Average hourly earnings rose just 0.1% in November, with annual wage growth holding at 3.5%. The average workweek edged slightly higher, but hours worked across most industries were broadly stable.
Overall, the November jobs report delivers a mixed but increasingly cautious signal. Employment continues to grow, but only narrowly and at a subdued pace. Rising unemployment, weaker revisions, and an increase in involuntary part-time work all point to a labor market that is gradually losing steam rather than rebounding.
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