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U.S. Jobless Rate Rises To 4.6% In November, Highest Since 2021

2 min read

12/17/2025

U.S. unemployment rose to 4.6% in November, the highest level since September 2021, in a delayed report that points to a cooler but still functioning labor market.

U.S. Jobless Rate Rises To 4.6% In November, Highest Since 2021: U.S. unemployment rose to 4.6% in November

What Happened

The Labor Department said the jobless rate ticked up to 4.6% in November, with 7.8 million people unemployed. Employers added jobs at a modest pace, as nonfarm payrolls increased by Payrolls rose by 64,000 in November. Hiring was led by health care (+46,000) and construction (+28,000), while federal government employment continued to edge lower after a sharp October drop. Average hourly earnings rose just 0.1% on the month to $36.86 and were up 3.5% from a year earlier, indicating wage pressures continue to ease. The labor force participation rate held at 62.5% and the employment‑to‑population ratio at 59.6%.

Why It Matters

The higher unemployment rate, alongside tepid hiring and softer wages, suggests labor market conditions are normalizing after two years of tightness. That mix may reduce inflationary heat but also signals cooler demand for workers. Markets and policymakers are parsing whether the latest figures argue for patience on interest rates: the data reinforced a cautious near‑term stance even as investors debate the timing and extent of future moves.

The report also carried important caveats. Because of a lapse in federal appropriations from October 1 through November 12, the release was pushed back, and Household data were not collected in October. Officials extended November data collection to ensure quality, but some analysts still expect revisions as additional information arrives.

The Bigger Picture

November’s jobless rate marks a new four‑year high for unemployment, even as the economy continues to add jobs. Revisions trimmed a net 33,000 positions from August and September payrolls, underscoring a year of slower, uneven gains. Meanwhile, wage growth cooled further, with Wage growth slowed to 0.1% month over month. Taken together, the trends point to a labor market that is loosening rather than lurching—one where hiring persists, but with less urgency than in 2023.

Looking ahead, the next Employment Situation report is scheduled for January 9, 2026. Until then, policymakers will watch incoming inflation and spending data to gauge whether the balance between cooling price pressures and slowing growth is holding.