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

US job growth slowed again in November as the labor market lost momentum. The unemployment rate rose to its highest level in four years, reaching 4.6%. The latest data came from the Bureau of Labor Statistics, which published the numbers after delays caused by the recent government shutdown.The economy added only 64,000 jobs in November. This weak gain followed a sharp drop in October. The slow pace shows a cooling labor market that has struggled to recover from months of uneven hiring.

US Job Growth Shows Clear Signs of Labor Market Cooling

The weak job growth in November came after a steep decline in October. According to Reuters, October payrolls fell by 105,000. That drop was the largest since late 2020. Much of the decline came from a major contraction in federal government employment.The jobless rate continued to rise even as more people tried to return to the workforce. Long-term unemployment increased to one of its highest points since 2021. More people also moved into part-time work because they could not find full-time roles.The Federal Reserve has been watching these numbers closely. The Fed cut interest rates for a third straight meeting in an effort to support the softening labor market. But policymakers are divided on whether more rate cuts will be needed in 2026.Market reaction was mixed. The S&P 500 opened lower. The dollar also slipped. Traders are still trying to understand how long the slowdown may last and how it might affect future Fed decisions.

Why the Labor Market Slowdown Matters for Workers and the Economy

The slowdown affects workers across many groups. The unemployment rate for Black Americans rose to 8.3%. This is the highest rate since 2021. Black teenagers saw an even stronger rise in joblessness.Hiring remains slow across several industries. According to Bloomberg reporting, layoffs remain high. Major companies such as Amazon and Verizon announced job cuts in recent months. These cuts weighed heavily on consumer confidence.The shutdown also made the November report harder to interpret. The BLS said the household data is more variable than usual. The agency extended its data‑collection window and acknowledged the results may have a wider margin of error.Wage growth also slowed. Average hourly earnings rose only 0.1% in November after a stronger increase in October. Economists say weak wage growth could limit household spending in the months ahead.

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The US job growth slowdown raises new questions about the strength of the economy. Many analysts believe the labor market may continue to cool during early 2026. The main keyword remains central as policymakers study US job growth to guide future decisions.

FYI (keeping you in the loop)-

Q1: What caused US job growth to slow?

US job growth slowed because hiring weakened across several sectors. Federal government payrolls also fell sharply. More workers struggled to find new roles after layoffs.

Q2: Why did the unemployment rate rise?

The unemployment rate rose as more people entered the labor force but could not find work. Long-term unemployment also increased. This pushed the rate to a four-year high.

Q3: How did the shutdown affect the jobs report?

The shutdown caused delays and reduced survey responses. The BLS had to combine October and November data. Some figures may be more variable than normal.

Q4: What is the Federal Reserve doing?

The Fed cut rates to support the softening job market. Officials are split on whether more cuts are needed. Traders expect further action next year.

Q5: Are wages keeping up?

Wage growth slowed in November. Earnings rose only 0.1%. This may limit consumer spending in early 2026.