U.S. Unemployment Hits Highest Point Since 2021
In this May 7, 2020, file photo, the entrance to the Labor Department is seen near the Capitol in Washington. (AP Photo/J. Scott Applewhite, file)
The United States added 64,000 jobs in November, but the economy shed 105,000 positions in October as federal employees left following cutbacks under President Trump’s administration, according to delayed government reports. The unemployment rate climbed to 4.6%, the highest since 2021, the AP reported.
Both the October and November job figures, released Tuesday by the Labor Department, were delayed due to the 43-day federal government shutdown. While U.S. companies are largely retaining current staff, many are hesitant to hire amid uncertainty over how to implement AI, navigate President Trump’s unpredictable policies—especially tariffs—and manage the lingering effects of the high interest rates the Federal Reserve imposed in 2022 and 2023 to curb inflation.
This uncertainty is making it harder for job seekers to find opportunities or even secure interviews. Federal Reserve policymakers remain divided over whether the labor market needs additional support through lower interest rates, a debate complicated by delayed and incomplete economic reports following the shutdown. The Labor Department is expected to provide further clarity with its November hiring and unemployment data, released Tuesday, 11 days late.
Revisions to September data revealed that the economy added 911,000 fewer jobs in the year ending in March than previously reported, averaging just 71,000 new jobs per month instead of the 147,000 initially reported. Job growth has slowed further since March, averaging 59,000 per month. By comparison, the post-COVID hiring surge from 2021 to 2023 saw an average of 400,000 jobs added per month. The unemployment rate, while still relatively low historically, has risen from a 54-year low of 3.4% in April 2023.
Due to the government shutdown, the Labor Department did not release jobs reports for September, October, and November on schedule. The September report was eventually published on Nov. 20, seven weeks late. Tuesday’s release will include October job creation numbers from businesses, nonprofits, and government agencies, along with November data. However, an unemployment rate for October will not be provided, as the shutdown prevented the necessary calculations.
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