The US unemployment rate rose to 4.6% in November 2025, marking a four-year high, according to the latest figures from the US Labor Department. The data highlights ongoing weaknesses in the labor market, even as employers added 64,000 jobs, surpassing many economists’ expectations.

Mixed Job Market Signals

November’s jobs report follows a decline of 105,000 positions in October, largely driven by a reduction of 162,000 federal government roles due to the Trump administration’s earlier job-cut initiatives. The November report was also the first detailed snapshot of the labor market since the 43-day federal government shutdown, which disrupted data collection and delayed reporting.

Economists noted that while job gains in November suggest some resilience, the rise in unemployment and other mixed signals leave central bankers with a complex picture as they consider the path of US interest rates.

Federal Reserve Faces Policy Challenges

The Federal Reserve recently cut interest rates by a quarter percentage point—its third cut of 2025—in an effort to support a slowing labor market. However, economists say the new data could complicate the Fed’s internal debates.

Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management, explained:
“For a data-dependent Fed, this morning’s data will only increase the internal debate. It remains to be seen how attentive they are to the labor market versus the fact that inflation has remained stubbornly above their 2% target.”

Seema Shah, Chief Global Strategist at Principal Asset Management, added that Fed Chair Jerome Powell is likely to view the November figures cautiously, noting that data distortions from the government shutdown and tighter immigration policies mean payroll numbers “should not be taken at face value.”

Despite these caveats, Shah acknowledged that the unexpectedly sharp rise in unemployment could trigger “creeping concern” within the Fed about the labor market’s trajectory.

Sector-by-Sector Job Trends

The November report showed uneven job growth across industries:

• Health care: +46,000 jobs, including 11,000 in nursing and residential care
• Construction: +28,000 jobs
• Transportation and warehousing: -18,000 jobs
• Manufacturing: -5,000 jobs

These fluctuations underscore the mixed economic signals facing policymakers.

Long-Term Unemployment Also Increases

The number of Americans unemployed for more than six months rose to 1.9 million in November, up from 1.8 million in September and 1.7 million the previous year. Long-term unemployment remains a critical concern for both the government and the Federal Reserve.

Software engineer Ivan Maurizi, 37, shared his personal experience, having spent nearly a year unemployed after being laid off from a video game sector role in December 2024. Despite sending over 500 applications, he received little response until he leveraged industry contacts. He recently started a new position in banking but remains cautious about job security due to ongoing layoffs in his network.

Implications for Economic Policy

The November jobs data comes at a pivotal moment as the Fed weighs competing priorities: supporting employment while controlling inflation, which continues to exceed the 2% target. Projections suggest the Fed may enact one rate cut in 2026, though further weakening in the labor market could prompt additional easing measures.

Kevin Hassett, Director of the White House National Economic Council, emphasized that the figures align with expected trends and reflect a “solid upward trajectory” from the private sector perspective.

The mixed data, including delayed and partially revised reports for August, September, and October, leaves uncertainty for investors, economists, and policymakers alike.