USA UNEMPLOYMENT RATE RISES TO 4,6% IN COOLING LABOUR MARKET

The unemployment rate of the United States of America (hereinafter: USA) increased to 4,6 percent in November 2025, marking the highest level since 2021, according to delayed reports released on Tuesday by the Department of Labour’s Bureau of Labour Statistics. The report, which covered both October and November payroll data following a government shutdown, indicated a cooling trend in the national labour market. The data showed that the USA economy lost a total of 41.000 jobs across October and November.

November And October Job Payroll Figures

The economy of the USA experienced job losses in October, followed by a modest recovery in November, according to the Bureau of Labour Statistics. In October, the national economy shed 105.000 jobs, followed by an addition of 64.000 jobs in November. This combined change resulted in an overall loss of 41.000 positions over the two-month period. The 64.000 jobs added in November were higher than the 40.000 forecast by some economists.

The report’s delay was a direct result of the 43-day federal government shutdown, which impacted the ability of key agencies, including the Ministry of Labour, to collect necessary data. Due to these disruptions, the unemployment rate for October was not calculated.

USA Unemployment Rate Reaches Four-Year High

This November figure is the highest reported rate since 2021. The unemployment rate had previously bottomed out at a 54-year low of 3,4 percent in April 2023. Over the course of 2025, the unemployment rate increased from 4,0 percent in January to 4,6 percent in November.

The number of persons who were working part-time for economic reasons increased to 5,5 million in November, representing an increase of 909.000 from September. The number of Americans who have been unemployed for less than five weeks also rose, reaching 2,5 million in November, which is the highest level since 2020.

Sectoral Employment Shifts And Government Layoffs

The substantial job losses in October largely reflected a sharp drop in federal government employment. A decline of 162.000 federal workers was registered in October, many of whom departed as a result of deferred buyouts or resignation packages that took effect at the end of fiscal year 2025 on 30 September. Government employment continued to decrease in November, shedding an additional 6.000 jobs. The provincial government sector has lost 271.000 jobs since reaching a peak in January.

Gains in employment during November were concentrated in specific sectors. The healthcare sector added 46.000 jobs, which is higher than the average monthly gain of 39.000 over the preceding 12 months. Construction payrolls increased by 28.000, a gain consistent with the average for the past year. The social assistance sector also added 18.000 jobs.

Conversely, the manufacturing sector continued to decline, losing 5.000 jobs in November and marking the seventh consecutive month of losses. Manufacturing has shed jobs in most months of 2025. Employment also decreased in the transportation and warehousing sector, which lost 18.000 jobs, specifically a loss of 18.000 in couriers and messengers.

Wage Growth And Prior Revisions

Average hourly earnings increased at an annual rate of 3,5 percent in November, which is the slowest pace reported since May 2021 (This represented an increase of only 0,1 percent from October.).

Furthermore, earlier job creation figures were revised downwards. The change in nonfarm payroll employment for August was revised down by 22.000, changing the initial figure from a loss of 4.000 to a loss of 26.000. The September figure was also revised down by 11.000, from an initial gain of 119.000 to a gain of 108.000.

Concluding Outlook

The data released by the Ministry of Labour outlines a labour market that is experiencing a deceleration in hiring momentum, evidenced by the two consecutive months of an increased USA unemployment rate. The rise in the rate to 4,6 percent indicates a cooling of labour market conditions, despite November’s job gains partially offsetting the significant losses recorded in October. The large one-time decline in provincial government employment was a primary factor in the October data, though the ongoing job losses in the manufacturing sector suggest a broader structural headwind.

This evidence of a softening labor market arrives after the central bank reduced its benchmark interest rate by 25 basis points to 3,5−3,75 percent in its final decision of the year. This rate cut, the third in 2025, reflects a decision-making environment in which officials are observing a gradual cooling of labour conditions. The delayed and incomplete nature of the official economic reports following the government shutdown continues to complicate the deliberations of central bankers regarding the necessity of further interest rate adjustments to support the labour market. The cooling of the labour market and the rise in the unemployment rate are factors that may influence future monetary policy decisions, particularly if current trends persist.