The United States labour market showed a mixed picture in the final months of 2025, with job creation rebounding but unemployment climbing to a multi-year high, according to delayed government data released this week.
Delayed Data Reveals Job Market Swings
The US Labor Department, in reports delayed due to a prolonged federal government shutdown, stated that employers added 64,000 non-farm jobs in November 2025. This figure surpassed the expectations of economists surveyed by Reuters, who had anticipated a gain of only 50,000 positions. However, the report also contained a significant revision for the previous month, revealing that the economy lost 105,000 jobs in October 2025.
The 43-day federal shutdown was the direct cause for the delay in releasing both the October and November employment numbers, which were only made public on Tuesday. This created a period of uncertainty for markets and policymakers awaiting key economic signals.
Unemployment Rate Climbs to a Four-Year High
Alongside the payroll data, the report highlighted a concerning rise in the jobless rate. The unemployment rate increased to 4.6% in November, as reported by the Associated Press. This marks the highest level of unemployment the country has seen since 2021, indicating a softening in labour market conditions despite the November job gains.
The juxtaposition of positive job creation against a rising unemployment rate can occur due to factors like an expanding labour force, where more people start looking for work. The detailed report provides crucial insights for the Federal Reserve's monetary policy decisions and for global investors assessing the strength of the world's largest economy.
Context and Market Implications
The November jobs number, while beating modest expectations, represents a significant slowdown from the robust job growth witnessed in earlier periods of post-pandemic recovery. The substantial loss of jobs in October, coupled with the rising unemployment rate, paints a picture of an economy facing headwinds.
Analysts will scrutinise subsequent reports to determine if November's growth is the beginning of a stabilising trend or an anomaly. For Indian IT firms, exporters, and the broader economy with significant ties to the US, these labour market trends are vital indicators of American consumer health and corporate spending power. The data is a key piece in the global economic puzzle as central banks worldwide navigate challenges of growth and inflation.
This remains a developing story, and further updates on the US economic landscape are expected.
