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A Shaky Rebound After the Shutdown
The United States labor market is finally emerging from a monthslong data fog. On Tuesday, the Bureau of Labor Statistics (BLS) released the latest US labor market report. The data shows the country lost 105,000 jobs in October. However, the economy added 64,000 jobs back in November.
Despite this small gain, the national unemployment rate climbed to 4.6%. This figure represents the highest level since September 2021. The job market looked fragile even before this report arrived. June and August also showed net losses, marking a rare contraction period.
Federal Workforce Plunges Under New Programs
Government employment saw a massive decline this autumn. Federal payrolls dropped by 162,000 positions in October alone. This sharp fall stems from a “deferred resignation” program. Many employees accepted these offers through Elon Musk’s now-defunct Department of Government Efficiency.
Since January, federal government jobs have plunged by 271,000. This shift significantly weighs down the overall US labor market report figures. While public sector roles vanished, some private sectors showed resilience. Health care added 46,000 jobs in November. Construction also grew by 28,000 roles. Experts believe AI data centers fueled much of this building activity.
Stagnant Wages and Consumer Health
Wage growth remained sluggish throughout the fall season. Average hourly earnings rose only 0.1% in November. Over the past year, earnings increased by 3.5%. This growth barely outpaces inflation, leaving consumers with little extra purchasing power. “Follow PhoenixQ to keep up with every important update.”
Economic warning signs are appearing in other sectors too. The leisure and hospitality industry shrank by 12,000 roles. ADP chief economist Nela Richardson called this trend concerning. She noted that a slowdown in hospitality points directly to a weaker consumer. Meanwhile, sectors like manufacturing and retail showed almost no growth at all.
Missing Data and Market Reactions
The recent 43-day government shutdown complicated data collection. BLS employees could not gather specific details for October. Therefore, the current report lacks an official October unemployment rate.
Wall Street reacted calmly to the news. Stock futures traded flat as investors processed the revisions. Federal Reserve Chair Jerome Powell previously warned that this data might appear distorted. On Thursday, the government will release delayed inflation data. This will provide the next big clue for the American economy.
