Updated Dec. 16, 2025, 3:35 p.m. ET
The latest jobs report shows U.S. hiring slowed in November and employers shed jobs in October, providing a clearer view of the labor market after months of data disruptions.
American employers added 64,000 jobs in November, after an estimated loss of 105,000 in October led by a decline in federal government workers, the Bureau of Labor Statistics said Dec. 16. The report also revealed the unemployment rate rose to 4.6%, up from 4.4% in September and 4% at the beginning of the year. It’s the highest unemployment rate since September 2021.
“The good news is that we finally get federal data on the job market after the logjam caused by the government shutdown. The not-so-good news is that it isn’t pretty,” Bankrate Senior Economic Analyst Mark Hamrick said in a note.
Payroll gains for August and September were revised down by a total of 33,000, indicating the labor market was even weaker at the end of summer and into early fall than initially estimated.
The BLS said because the government shutdown disrupted data collection, the November estimates “are associated with slightly higher than usual standard errors” due to lower survey response, composite weighting changes, and the use of a two-month, rather than one-month analysis period.
“There’s little doubt the labor market is cooling, even after accounting for these nuances in the October and November data,” Elizabeth Renter, a NerdWallet senior economist, said in a note. “Federal workers on administrative leave through the deferred resignation program may have had several months to find new work, and they very well may have needed that time. The current job market is not very welcoming to job seekers, with new jobs and overall hiring subdued.”
The report’s release follows the Federal Reserve’s decision Dec. 10 to cut its benchmark federal funds rate for the third time in a row to address cooling in the job market. Fed officials will also have the Labor Department’s December jobs report, due out Jan. 9, to review before their next meeting at the end of January.
Which industries are hiring?
Health care, a dependable source of job growth in recent years, again drove payroll gains with 46,000. Construction employment grew by 28,000, and the social assistance sector added 18,000 jobs.
Meanwhile, transportation and warehousing shed 18,000, reflecting job losses for couriers and messengers.
Federal government employment declined 6,000, following a loss of 162,000 in October “as some federal employees who accepted a deferred resignation offer came off federal payrolls,” the BLS said. After waves of mass layoffs, federal government employment is down 271,000 since January.
“Over the past three years more than 90% of all the jobs the US have created have come in just three sectors – government, private education & healthcare and leisure & hospitality,” ING Chief International Economist James Knightley said in a note. “Government is now becoming a drag while all other private sectors continue to struggle with net job losses in five of the past seven months in aggregate.”
How is the job market overall?
The September jobs report, the most recent release before November, surpassed some analysts’ expectations. It revealed employers added 119,000 jobs, though the unemployment rate ticked up to 4.4%.
Ahead of the November report, an ADP National Employment Report found private employers shed 32,000 jobs, and a Challenger, Gray & Christmas report found employers announced 71,321 job cuts in November.
Reduced hiring signals a cooling economy, “but not one on the brink of a labor market unravelling,” according to Seema Shah, chief global strategist at Principal Asset Management.
“Labor demand is slowing, but shifting labor supply dynamics, such as tighter immigration policies, also appear to be in play,” Shah said in a note. “AI adoption could also reshape employment over time, but in the near term, firms view it as a growth catalyst rather than a threat.”
Will the Fed cut rates again in January?
The Fed’s December dot plot, a chart mapping what policymakers think interest rates will be in the future, showed the median member on the central bank’s rate-setting committee forecasts only one quarter-point cut in 2026.
Comerica Bank Chief Economist Bill Adams previously told USA TODAY that the dot plot does not account for this jobs report, the consumer price index report due out Dec. 18, and more data the Fed will get before its next meeting at the end of January.
Federal Reserve Chair Jerome Powell warned Dec. 10 that BLS jobs figures may be overstated due to an overcount in payroll job numbers “that will be corrected.” For now, he said the agency could be overcounting by about 60,000 each month.
“So 40,000 jobs could be negative 20, but that could be wrong by 10 or 20 in either direction,” Powell said during a news conference after the Fed’s December meeting.
While some analysts think cooling in the job market will further reductions in the Fed’s benchmark rate, others expect policymakers may hold off before making another change to allow time for the central bank’s previous three cuts to impact the economy.
(This story was updated to add new information)
Reach Rachel Barber at rbarber@usatoday.com and follow her on X @rachelbarber_.