U.S. Job Growth Rebounds in November, but Rising Unemployment Signals Labor Market Softening

U.S. job growth rebounded in November after a sharp contraction in October, though signs of a cooling labor market persist amid heightened economic uncertainty linked to President Donald Trump’s aggressive trade policies.

According to data released Tuesday by the Labor Department’s Bureau of Labor Statistics (BLS), Nonfarm Payrolls increased by 64,000 jobs in November, marking a recovery from October’s decline. The prior month saw the economy shed 105,000 jobs, largely due to government spending cuts and a significant reduction in the federal workforce.

The October contraction reflected the departure of more than 150,000 federal employees who accepted deferred buyouts as part of the Trump administration’s efforts to reduce the size of the federal government. Most of those workers were removed from payrolls at the end of September. Notably, payroll figures were not affected by the furloughs during the 43-day government shutdown—the longest in U.S. history—as affected workers received retroactive pay once the government reopened.

The November employment report, along with a partial update for October, was delayed due to the shutdown, which prevented the BLS from collecting household survey data in October. As a result, the report did not include the unemployment rate or other household-based labor metrics for that month.

For November, the unemployment rate stood at 4.6%, up from 4.4% in September, pointing to emerging slack in the labor market. The BLS also noted that it adjusted the weighting of labor force estimates to account for the lack of October household data.

While the rebound in hiring offers some reassurance, the uptick in unemployment suggests that the labor market may be losing momentum. Economists warn that uncertainty surrounding trade policy, coupled with fiscal tightening and elevated cost pressures, could weigh further on employment conditions in the months ahead.