WASHINGTON, Dec. 16, 2025 — The U.S. unemployment rate rose to 4.6% in November, marking its highest level in more than four years and underscoring growing signs of weakness in the labor market, according to the latest government jobs report.
The Bureau of Labor Statistics (BLS) reported that the labor market added 64,000 jobs in November, a modest gain that outpaced expectations, but data also showed that the economy lost 105,000 jobs in October — figures that were delayed and skewed by a prolonged federal government shutdown.
Economists say the rise in unemployment — the highest since September 2021 — signals persistent fragility in hiring, as employers remain cautious amid economic uncertainty. The delayed data obscures a clear picture of labor market trends, but overall hiring has slowed sharply compared with the post-pandemic boom.
Federal Reserve officials are watching the labor market closely. The relatively weak jobs report has bolstered expectations for additional interest rate cuts after the Fed already reduced rates three times this year in response to economic slowdown. Markets are pricing in two more quarter-point cuts by the end of 2026 to support growth.
The unemployment increase reflects broader caution among employers navigating high borrowing costs earlier this year, evolving workplace technologies, and policy uncertainties. Analysts note that slower job creation could weigh on consumer spending and economic growth next year, influencing both business investment and monetary policy decisions.
