Unemployment Rises to Four-Year High as November Job Gains Fall Short of October Losses

The U.S. unemployment rate rose to 4.6% in November, the highest since September 2021, according to the Bureau of Labor Statistics. The monthly report shows the economy lost 105,000 jobs in October and recouped about 64,000 in November, while average hourly earnings rose 3.5% from a year earlier and inflation ran around 3% in September, the slowest pace in years.

Markets opened with a muted reaction to the data. The Nasdaq composite edged higher, while the S&P 500 slipped and the Dow was little changed. Democrats framed the numbers as evidence of economic strain tied to tariff policies, a smaller federal footprint and broader elements of the current administration's economic plan. A Democratic National Committee spokesman pointed to ongoing affordability concerns for working families and cited a separate study on rising holiday prices. The Labor Department noted private-sector momentum contributed to the snapshot of hiring, and the White House posted on social media that THE BEST IS YET TO COME!

Manufacturing payrolls declined again, with 5,000 manufacturing jobs lost in November after a 9,000-drop in October. The administration has highlighted manufacturing as a policy priority and has argued that a shift away from a federal hiring surge toward private-sector growth is part of a broader economic strategy. The unemployment rate for young workers rose as well: 16.3% for ages 16-19 in November, up from 13.2% in September, while unemployment among 16-24-year-olds climbed to 10.6%, the highest since 2021. Among 20-24-year-olds, the rate slipped slightly to 8.3% in November from 9.2% in September, though it remains elevated relative to pre-pandemic levels. Some officials tied the October federal payroll decline to the administration’s broader plan to shrink government headcount, arguing it reflects a shift toward private-sector hiring.

Retail sales data published alongside the jobs report showed a deceleration in consumer purchases. After a 0.1% gain in September, sales growth slowed, marking the weakest monthly reading since May. The softer reading comes as consumer sentiment cooled to its lowest level in about three years during November amid the government shutdown concerns, which could weigh on holiday spending. Still, the five-day Thanksgiving weekend reported by the National Retail Federation showed strong shopper participation, with a record 202.9 million consumers hitting stores, up from 197 million a year earlier.

Taken together, the numbers complicate the policy debate ahead of year-end and the 2024 political cycle. Analysts cautioned that the figures reflect sectoral shifts rather than a broad, uniform decline, while policymakers continued to argue about tariff policy, federal spending, and the pace of private-sector hiring. Supporters of the administration pointed to ongoing private-sector strength and wage growth as signs of resilience, while critics argued that tariff structures and a smaller government footprint could weigh on consumer prices and job security. The report underscores a fragile labor market where gains in some areas co-exist with weakness in manufacturing and among younger workers, within a broader debate about the best path to sustainable growth.