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Unemployment Hits 4.6% as Delayed Report Shows October Losses and Modest November Gains

Following a 43-day shutdown, the BLS attributes October’s losses to federal departures, flagging higher-than-usual noise in November.

Overview

  • Nonfarm payrolls increased by 64,000 in November while the unemployment rate rose to 4.6%, the highest since September 2021.
  • October payrolls declined by 105,000, reflecting about 162,000 federal employees coming off government payrolls after deferred buyouts.
  • Previous estimates were trimmed, with August and September employment revised down by a combined 33,000 jobs.
  • Average hourly earnings rose 0.1% on the month and 3.5% year over year, as hiring concentrated in health care (+46,000) and construction (+28,000) and manufacturing shed 5,000 jobs.
  • The BLS cautioned that November household estimates have higher variance due to altered collection and weighting, and the Fed remains cautious after three rate cuts with a final benchmark revision due in February.