US unemployment hits highest level since 2021 as labour market cools | Business and Economy News

The US economy gains jobs in healthcare and construction as other sectors stagnate, shrink.

The United States economy lost 41,000 jobs in October and November, and the unemployment rate has ticked up to its highest level since 2021 as the labour market cools amid ongoing economic uncertainty driven by tariffs and immigration policies.

In November, the US economy added 64,000 jobs after shedding 105,000 in October, according to a report released on Tuesday by the Department of Labor’s Bureau of Labor Statistics.

The unemployment rate rose to 4.6 percent, up from 4.4 percent in September. Because of the government shutdown in October and November, the US government was unable to gather key data used to gauge the state of the economy, including the unemployment rate for October.

October’s job losses reflected the 162,000 federal workers who lost their posts, a result of deferred buyouts of their contracts,  which expired at the end of September.

In November, there was a loss of another 6,000 government jobs. Gains were seen in the healthcare, social assistance and construction sectors. Healthcare added 46,000 jobs – higher than the 39,000 jobs gained in the sector on average each month over the past 12 months.

Construction added 28,000, consistent with average gains over the past year. The social assistance sector added 18,000 jobs.

Transportation and warehousing lost 18,000. Manufacturing jobs are also on the decline. The sector shed 5,000 jobs in November after cutting 9,000 jobs in October following a 5,000-job loss in September.

White House economic adviser Kevin Hassett told reporters on Tuesday to expect to see more manufacturing jobs in the next six months.

His assessment was driven by growth in construction jobs and manufacturing investments, which signal job growth is on the way.

People working part time for economic reasons also rose to 5.5 million, which is up 909,000 from September.

“Today’s long-awaited jobs report confirms what we already suspected: [President Donald] Trump’s economy is stalling out and American workers are paying the price,” Alex Jacquez, chief of policy and advocacy at the economic think tank Groundwork Collaborative, said in a statement.

“Far from sparking a manufacturing renaissance, Trump’s reckless trade agenda is bleeding working-class jobs, forcing layoffs, and raising prices for businesses and consumers alike.”

The data was released after the Federal Reserve cut its benchmark interest rate by 25 basis points to 3.5-3.75 percent as labour conditions cool.

“The labour market has continued to cool gradually, … a touch more gradually than we thought,” Fed Chairman Jerome Powell said after the rate cut decision last week.

On Wall Street, markets fell slightly after the jobs report. In midday trading, the Nasdaq was down 0.4 percent, the S&P 500 was down 0.5 percent and the Dow Jones Industrial Average was 0.4 percent below its market open.