The BareStory
The U.S. economy added 64,000 jobs in November, a figure that exceeded economists’ forecasts, according to delayed government data. The release from the Bureau of Labor Statistics also showed the unemployment rate rose to 4.6%, its highest level since September 2021. The November job gain followed a decline of 105,000 jobs in October. Both reports were delayed due to a 43-day government shutdown that ended last month.
Reactions to the new figures were mixed. White House press secretary Karoline Leavitt called it a "strong jobs report" and credited President Trump’s economic policies. In contrast, Heather Long of Navy Federal Credit Union said the country is in a "jobs recession," noting that businesses are pausing hiring. The rise in the unemployment rate was attributed to an increase in the number of people entering the labor force to look for work.
Federal Reserve officials and some analysts have expressed caution regarding the data's accuracy following the shutdown. Fed Chair Jerome Powell stated earlier this month that the central bank would view the reports with a "somewhat skeptical eye." Echoing this sentiment, Kay Haigh of Goldman Sachs Asset Management said the Fed is unlikely to put much weight on the numbers in its January meeting. The Fed recently lowered its key interest rate for the third consecutive time, citing risks to employment.
The BLS report also included downward revisions to job growth in August and September. November’s employment gains were primarily in the health care sector, while the transportation and leisure industries saw job losses. According to the data, average hourly earnings rose 0.1% for the month, a figure that supports the view of some Fed officials that the labor market is not driving inflation. A broader measure of unemployment that includes discouraged workers also increased, reaching 8.7%.
How it may affect me
As a U.S. reader:
• Finding a job may be more challenging, as the unemployment rate has risen to a four-year high, with some analysts noting a pause in hiring.
• Your borrowing costs on loans may remain low, as the Federal Reserve recently cut its key interest rate, citing risks to the U.S. job market.
• Future economic policy is less predictable, as Federal Reserve officials have expressed skepticism about the accuracy of this data following a government shutdown.
