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| US Job Growth Rebounds in November 2025 Despite Shutdown-Distorted Unemployment Rate |
U.S. job growth bounced back in November, adding 64,000 nonfarm positions after October’s sharp drop tied to federal workforce reductions. The unemployment rate edged to 4.6%, but officials caution the figure is skewed—October’s household survey data was lost during the 43-day government shutdown, forcing statistical adjustments.
Hiring remains cautious as businesses grapple with ongoing trade policy uncertainty and weaker consumer demand. Wage growth cooled slightly, with average hourly earnings up 3.5% year-over-year, signaling easing inflation pressures but also potential strain on spending.
Healthcare led gains with 46,000 new jobs, followed by construction (+28,000), while federal employment shrank further. Retail sales held steady in October, though lower-income households are pulling back on discretionary purchases, highlighting a growing “K-shaped” economic divide.
The Labor Department plans methodological refinements in February, including updates to its birth-death model, which could revise past payroll estimates. Despite recent Fed rate cuts, officials are holding off on further easing, awaiting clearer labor market signals.
