Date: December 16, 2025

The U.S. economy showed a modest rebound in job creation in November, with the number of non-farm payroll jobs rising more than economists expected. According to the U.S. Bureau of Labor Statistics (BLS), non-farm payroll employment increased by 64,000 in November, beating forecasts of around 50,000 jobs added. This marked an important bounce after a significant drop in October when the economy lost 105,000 jobs largely due to federal government layoffs linked to a prolonged shutdown.

However, while the headline payroll number came in better than anticipated, the labor market still shows signs of weakness. The unemployment rate climbed to 4.6% — the highest level seen in several years — reflecting broader slack in hiring and labor participation, and not just payroll numbers.

Sector Trends:

• Gains were seen in health care and construction, which contributed significantly to the November job additions.

• On the other hand, sectors like transportation, warehousing, and government continued to shed jobs or grow slowly. Federal jobs declined again after heavy losses in October.

Wages & Hours:

Average hourly earnings rose, but at a slower pace than before, indicating slower wage growth which could limit consumer spending — a key driver of economic growth.

Why This Matters:

This report arrived later than usual due to a 43-day federal government shutdown, which delayed data collection and may have distorted some survey results. Analysts warn that data quality is less reliable than typical months, making it harder to draw firm conclusions.

Impact on Markets & Fed Policy:

The mixed data has kept markets cautious: stocks and the U.S. dollar weakened, while investors speculated that the Federal Reserve might maintain or further ease interest rates if labor markets continue to soften. Many see the higher unemployment rate and slower hiring as key reasons the Fed will remain cautious on interest rate increases.

Overall, although the U.S. added jobs in November and surpassed expectations, the broader labor market shows signs of cooling, highlighting ongoing economic challenges and uncertainty going into 2026.