US unemployment rate rose to 4.6% in Novemberthe highest level in more than four years, a new sign of weakness in the labor market.
The largest economy in the world 64,000 jobs were created in November, but 105,000 were lost in Octoberstrengthening the argument that the Federal Reserve will cut interest rates again in the new year.
Although the number of new jobs in November beat expectations of 50,000 among economists surveyed by Bloombergthe loss of jobs in October was much older, dragged by one sharp decline of 162,000 in the federal service.
The unemployment rate was the highest since September 2021 rose from 4.4% registered in September 2025. The Bureau of Labor Statistics (BLS) has not released October data due to the recent government shutdown. “Ultimately, if you ignore all the chatter, the unemployment rate is perhaps the most important number in the reportsaid Robert Tipp, Head of Global Bonds at PGIM Fixed Income.
“The fact that this indicator is going up means that The Fed’s focus will continue to be on the labor market, not inflation.”
The report provides an important insight into the economic situation in the United States following the record-breaking government shutdown that prevented much official data from being released.
It contributes to you mixed outlook for the economywith a weak labor market, continued high inflation, but Solid GDP growth is expected for the third quarter. The release of November inflation data will be postponed on Thursdayafter the BLS canceled its October report.
The report comes afterwards The Fed will cut interest rates for the third time this year last weeksending borrowing costs to their lowest level in three years after officials debated whether to prioritize inflation risks or those related to employment at a meeting.
Employment figures are expected to be revised. The President of the Fed, Jay Powellexplained last week that the numbers could be overestimated up to 60,000 jobs per month.
With an average setting of just 22,000 jobs Over the past three months, Powell’s comments suggest that “The Fed actually recognizes that the economy is losing jobs.which will encourage more dovish sectors to continue to argue for rate cuts,” said ING’s James Knightley.
The report could also be fodder New orders at more favorable conditions by President Donald Trump, who has increased pressure on the Fed to accelerate and extend cuts in borrowing costs.
“The bottom line is that the president believes interest rates should be lower, and I think there are many people who share that view.” said Kevin HassettDirector of the National Economic Council and one of the main candidates to succeed Powell at the helm of the Fed, in statements CNBC according to the report.
The returns of the short-term government bondssensitive to monetary policy expectations, fell after the release. The two-year bond yield fell 0.02 percentage points to 3.49%.
The market is currently pricing in two quarter-point interest rate cuts by the end of 2026.
The higher unemployment was partly explained by a Increase in youth unemploymentwhich rose from 13% in September 16% in November. Analysts warned that differences in this age group were not uncommon.
He Federal employmentwhich lost another 6,000 jobs in November, accumulates a Decline of 271,000 since Januaryafter a series of layoffs by the so-called Ministry of Government Efficiencyassociated with Elon Musk.
This offsets some of the negative outlook Overall, private employment grew by 121,000 jobs in the last two monthsabove expectations, indicating that companies continue to hire steadily.
Stephen Brownof Capital Economics, argued that the “positive momentum” in hiring in the private sector “suggests this.” The Fed won’t be too worried due to the surprisingly rising unemployment rate… assuming unemployment stabilizes in the coming months“.
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