Economy|Business and EconomyUS unemployment hits highest level since 2021 as labour market coolsThe US economy gains jobs in healthcare and construction as other sectors stagnate, shrink.
## Economy Update: United States Job Market Overview
Economy Update: United States Job Market Overview
In October and November, the United States economy experienced a net job loss of 41,000, with the unemployment rate increasing to its highest level since 2021. This development is attributed to ongoing economic uncertainty influenced by tariffs and immigration policies.
According to the Bureau of Labor Statistics, the U.S. economy gained 64,000 jobs in November after losing 105,000 jobs in October. The unemployment rate rose to 4.6 percent from 4.4 percent in September. A government shutdown during October and November affected the availability of key economic data, including October's unemployment rate.
Federal Workers: October saw a loss of 162,000 federal jobs due to deferred contract buyouts. Government Jobs: November recorded an additional loss of 6,000 positions. Healthcare: The sector added 46,000 jobs, exceeding the 12-month average of 39,000. Construction: Gained 28,000 jobs, aligning with average yearly increases. Social Assistance: Added 18,000 jobs. Transportation and Warehousing: Lost 18,000 jobs. Manufacturing: Experienced a decline, shedding 5,000 jobs in November after losses in previous months.
This development is attributed to ongoing economic uncertainty influenced by tariffs and immigration policies.
White House economic adviser Kevin Hassett indicated that an increase in manufacturing jobs is anticipated within the next six months, supported by growth in construction jobs and manufacturing investments.
Part-time employment for economic reasons rose to 5.5 million, an increase of 909,000 since September. The Federal Reserve responded by reducing the benchmark interest rate by 25 basis points to 3.5-3.75 percent. Fed Chairman Jerome Powell noted that the labor market is cooling more gradually than expected.
Following the jobs report, the stock market experienced a slight decline. The Nasdaq fell by 0.4 percent, the S&P 500 decreased by 0.5 percent, and the Dow Jones Industrial Average dropped by 0.4 percent in midday trading.
Based on reporting by Al Jazeera.
