US employers added 64,000 jobs in November, data released Tuesday by the US Bureau of Labor Statistics revealed, exceeding economists’ expectations of a gain of 50,000.
At the same time, the unemployment rate rose to 4.6%, up from 4.2% a year earlier.
The increase in nonfarm payrolls by 64,000 in November followed a revised decline of 105,000 in October after a surprise increase of 119,000 in September.
The October slump was driven largely by a sharp contraction in government employment, as deferred layoffs instituted earlier in the year took effect. Government payrolls declined by 162,000 that month.
Federal statistical agencies were unable to collect data for more than a month during the recent government shutdown, the longest disruption of its kind on record.
As a result, the October report was released in abbreviated form.
Will have to read data with ‘skeptical eye’: Powell
Federal Reserve Chair Jerome H. Powell has warned that the delayed data should be treated cautiously.
He said last week that upcoming labour market reports could be distorted by technical factors and measurement challenges.
“We’re going to get data, but we’re going to have to look at it carefully and with a somewhat skeptical eye,” Powell said, adding that it may be “distorted by very technical factors.”
Powell also suggested official statistics may be overstating job creation by as many as 60,000 jobs per month, raising the possibility that the economy has been losing around 20,000 jobs a month since April, once adjustments are made for business births and closures.
Teenagers see notable increase in joblessness
Despite the data gaps, household survey measures showed little change in November from September, with the unemployment rate holding at 4.6%.
That rate, however, is higher than a year earlier and reflects a gradual deterioration in labour market conditions.
Among major worker groups, teenagers saw a notable increase in joblessness, with the unemployment rate rising to 16.3%.
Short-term unemployment also climbed, with the number of people jobless for less than five weeks increasing by 316,000 to 2.5 million.
Long-term unemployment was little changed at 1.9 million, accounting for just over 24% of all unemployed people.
Household survey data for October were not collected due to the shutdown, limiting visibility into month-to-month changes during that period.
Health care and construction provide support
Job gains in November were concentrated in a handful of sectors.
Health care employment rose by 46,000, broadly in line with its average monthly growth over the past year.
Gains were spread across ambulatory health care services, hospitals, and nursing and residential care facilities.
Construction employment increased by 28,000, led by nonresidential specialty trade contractors.
The sector has shown little net growth over the past 12 months, making November’s increase a relative bright spot.
Social assistance employment continued to trend higher, adding 18,000 jobs, primarily in individual and family services.
Federal government employment, by contrast, declined by a further 6,000 in November, following the steep losses recorded in October.
Labour supply constraints add complexity
Economists note that while labour demand has softened, the unemployment rate has not risen more sharply, partly because labour supply growth has slowed.
Policies targeting immigration have reduced the number of job seekers, easing pressure on employers to expand hiring to maintain stable unemployment.
The combination of muted job growth, a rising jobless rate and data uncertainty leaves policymakers with a complex picture as they assess the balance between economic slowing and persistent inflation risks.
Flat October sales underscore softer demand
Separately, US retail sales lost momentum this autumn, according to data released by the Census Bureau on Tuesday, reinforcing signs that economic growth has slowed in recent months.
The October figures, published after delays caused by the federal government shutdown, showed retail sales were unchanged from the previous month, following a modest 0.1% increase in September.
Economists surveyed by The Wall Street Journal had forecast a 0.1% rise.
The flat reading points to a cooling in consumer spending, with retailers seeing softer demand compared with earlier in the year.
Monthly retail sales growth averaged around 0.5% through much of 2024, highlighting a clear moderation in recent months.
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