New jobs report shows over 100k jobs lost in October primarily due to federal layoffs
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Job reports give a bleak outlook with highest unemployment rate since 2021
- The US labor market showed a mixed picture in November, gaining 64,000 jobs after a significant loss of 105,000 positions in October, with the unemployment rate climbing to 4.6%, its highest level since 2021.
- These job reports for October and November were published late due to a 43-day federal government shutdown, which also complicated Federal Reserve deliberations on interest rates.
- October's substantial job losses were primarily driven by a 162,000 reduction in federal employees, many reportedly resigning under pressure from cutbacks by the Trump administration.
- Hiring momentum has clearly waned, hampered by uncertainty surrounding Trump’s tariffs, high interest rates, and the increasing adoption of artificial intelligence, leading companies to retain staff but hesitate to hire new ones.
- Workers’ average hourly earnings saw a modest 0.1% rise from October, with year-on-year pay up 3.5%, the lowest figure recorded since May 2021, reflecting a soft labor market.