November Labor Market Shows Divergence: 64K Jobs Added While Unemployment Rate Rises to 4.6%

The US labor market painted a complicated picture in November, with employers adding 64,000 positions alongside an uptick in the unemployment rate to 4.6%, according to the Bureau of Labor Statistics. Healthcare and construction sectors led hiring efforts, while federal government employment continued its downward slide. The BLS noted that “total nonfarm payroll employment changed little in November,” signaling a stalled labor market that has essentially flatlined since April. A federal shutdown delayed the release schedule by over a week, forcing the BLS to skip its October report entirely.

Unemployment Trends Across Demographic Groups

November’s household survey data revealed 7.8 million unemployed Americans, a figure noticeably elevated compared to last year’s 7.1 million. Teen unemployment proved particularly concerning, surging to 16.3%.

The broader demographic breakdown showed:

• Adult men and women: 4.1% unemployment rate
• White workers: 3.9%
• Hispanic workers: 5.0%
• Black workers: 8.3%
• Asian workers: 3.6%

These rates remained relatively stable month-over-month, though short-term joblessness shifted upward—2.5 million people reported unemployment lasting fewer than five weeks, representing a 316,000 increase from September.

Persistent Labor Force Challenges

Long-term unemployment held steady at 1.9 million individuals, accounting for 24.3% of all jobless people. The labor force participation rate remained stuck at 62.5%, with the employment-population ratio unchanged at 59.6%.

Underemployment became increasingly visible: 5.5 million part-time workers seeking full-time employment jumped 909,000 from September alone. Additionally, 6.1 million Americans wanted jobs but weren’t classified as unemployed due to not actively searching in the previous four weeks. Within this discouraged segment, 651,000 had stopped looking entirely.

Federal Sector Contraction Continues

Federal employment dropped 6,000 in November, following an October plunge of 162,000. The year-to-date federal payroll loss now stands at 271,000. The BLS clarified that furloughed workers during the shutdown remained counted as employed if they received payment during the survey week.

Most other sectors—mining, manufacturing, retail, information, financial services, and leisure hospitality—recorded minimal employment changes. August payrolls saw a downward revision of 22,000 (total: -26,000), while September fell 11,000 to 108,000.

Policy Implications and Economic Outlook

As labor market data continues presenting mixed signals, Treasury Secretary Scott Bessent signaled that President Trump intends to announce a new Federal Reserve chair by January 1. Bessent emphasized that Trump has remained deliberate in discussing Fed policy priorities with candidates, with National Economic Director Kevin Hassett and former Fed Governor Kevin Warsh among top contenders.

Bessent projected $100-150 billion in tax refunds for the next quarter, suggesting this could support growth momentum. He forecasts full-year GDP growth reaching 3.5%, contingent on these fiscal measures.

For context, these employment metrics reflect a tightening labor market. While the US unemployment rate of 4.6% remains relatively moderate by recent standards, the divergence between job additions and rising unemployment warrants attention from policymakers and market participants alike. The stalled wage growth and stubborn underemployment figures underscore structural challenges in translating nominal job creation into meaningful economic opportunity.