US saw a significant cutdown in jobs in November, marking a record unemployment high since 2021. It gained 64,000 jobs in November, over October’s loss of 105,000 positions, primarily due to federal workforce reductions under the Trump administration. The unemployment level increased to 4.6%, reaching its peak since 2021.The Labour Department’s delayed reports, released on Tuesday, were postponed by the 43-day federal government closure. November’s employment growth exceeded economists’ predictions of 40,000, while October’s decline stemmed from 162,000 federal workers departing by fiscal year 2025’s end on September 30, influenced by Elon Musk‘s reduction of government personnel.Official revisions reduced August and September employment figures by 33,000 positions. Employment growth has slowed, affected by uncertainty regarding President Trump’s tariff policies and the lingering impact of Federal Reserve’s elevated interest rates from 2022-2023 to control inflation.
While organisations maintain current staff, they hesitate to expand, grappling with artificial intelligence integration and adaptation to Trump’s unpredictable policies, particularly his substantial import tariffs. This situation complicates job searches, while Federal Reserve officials debate interest rate adjustments amidst delayed economic data following the shutdown.The unemployment rate, though historically moderate, has risen since its 54-year low of 3.4% in April 2023. The situation is further complicated by advancing technology potentially reducing workforce requirements.“We’ve seen a lot of the businesses that we support are stuck in that stagnant mode: ‘Are we going to hire or are we not? What can we automate? What do we need the human touch with?”’ said Matt Hobbie, vice president of the staffing firm HealthSkil in Allentown, Pennsylvania, as quoted by Associated Press.“We’re in Lehigh Valley, which is a big transportation hub in eastern Pennsylvania. We’ve seen some cooling in the logistics and transportation markets, specifically because we’ve seen automation in those sectors, robotics,” he added.Employment concerns prompted the Fed to reduce its benchmark rate by 0.25 percentage points, marking the third reduction this year. Three Fed officials opposed this decision, marking the highest dissent in six years. Some officials resist further cuts while inflation exceeds the 2% target. Two maintained their position for unchanged rates, while Trump appointee Stephen Miran supported a larger reduction.The shutdown delayed the Labour Department’s September, October and November reports. The September report emerged on November 20, with partial October data released alongside November’s report on Tuesday. October’s unemployment rate remained uncalculated due to the shutdown.
