US Job Growth Slows in November as Unemployment Reaches Four-Year High

Job growth in the United States slowed sharply in November, signaling a loss of momentum in the labor market. According to newly released data from the Bureau of Labor Statistics (BLS), the unemployment rate rose to 4.6 percent, its highest level in four years.

The economy added only 64,000 jobs in November, a modest increase that followed a steep decline in October. The slowdown highlights ongoing challenges in the labor market after months of uneven hiring and economic uncertainty. The BLS report was released later than usual due to disruptions caused by a recent government shutdown.

October payroll figures were revised downward, showing a loss of 105,000 jobs—the largest monthly decline since late 2020. A significant portion of those losses came from reductions in federal government employment, adding further strain to overall job growth.

Despite more people entering or re-entering the labor force, unemployment continued to rise. Long-term unemployment increased to one of its highest levels since 2021, while more workers reported taking part-time jobs because full-time positions were unavailable.

The Federal Reserve is closely monitoring labor market trends as it assesses the broader economy. In response to signs of slowing growth, the central bank has reduced interest rates for the third consecutive meeting to support employment and economic activity. However, policymakers remain divided over whether additional rate cuts will be necessary in 2026.

Financial markets reacted cautiously to the report. Major stock indexes opened lower, and the U.S. dollar weakened slightly as investors weighed the potential duration of the labor market slowdown and its implications for future monetary policy.

The impact of weaker job growth has been uneven across demographic groups. Unemployment among Black Americans rose to 8.3 percent, the highest level since 2021, with Black teenagers experiencing an even sharper increase. Hiring has slowed across multiple industries, while several large companies have announced layoffs in recent months, further affecting worker confidence.

Wage growth also showed signs of easing. Average hourly earnings increased by just 0.1 percent in November, down from stronger gains in the previous month. Economists warn that slower wage growth could limit consumer spending and dampen economic activity in the coming months.

The BLS noted that November’s data may carry a wider margin of error due to collection challenges during the shutdown, but the overall trend points to a cooling labor market and growing uncertainty for workers and policymakers alike.