The US job market isn’t as hot as it used to be. The unemployment rate is up to 4.6%, the highest since 2021. Much of this is due to concerns about the economy, tariffs, and changes to immigration policies.
A new report from the Department of Labor says the economy lost 41,000 jobs over October and November. November saw a small increase of 64,000 jobs after a loss of 105,000 in October.
A major reason for the October losses was that 162,000 federal workers took buyouts. Another 6,000 government jobs disappeared in November. The White House says these departures are partly to blame for the rise in unemployment filings.
The private sector had mixed results. Healthcare added 46,000 jobs in November, better than the average of 39,000 per month over the last year. Construction added 28,000 jobs, which is typical. Social assistance jobs went up by 18,000.
But transportation and warehousing lost 18,000 jobs. Manufacturing is also shrinking, with 5,000 fewer positions in November after losing 9,000 in October and 5,000 in September.
The number of people working part-time because they can’t find full-time work is up to 5.5 million, 909,000 more than in September.
White House economic advisor Kevin Hassett is still hopeful about manufacturing. He thinks ongoing investments and construction are signs that more jobs are on the way.
Others aren’t so sure. “This jobs report confirms what a lot of people suspected: the economy is slowing down, and American workers are feeling it, said Alex Jacquez from Groundwork Collaborative. “Trade policies are causing layoffs and making things cost more for businesses and customers.”
This news comes after the Federal Reserve lowered its key interest rate by 0.25% to a range of 3.5% to 3.75% because the job market is weakening. Fed Chair Jerome Powell said that the slowdown is gradual but steady.
The markets didn’t react well. In midday trading, the Nasdaq fell 0.4%, the S&P 500 dropped 0.5%, and the Dow Jones Industrial Average went down 0.4%.
