November Jobs Report: More Weakness - But Little Clarity for the Fed

Labor Market Overview - The unemployment rate increased to 4.6% in November from 4.4% in September, with an increase of approximately 96,000 employed individuals, insufficient to absorb a labor force growth of over 300,000 [4] - The number of part-time workers seeking full-time employment rose by over 900,000, indicating a lack of full-time job availability [4] Payroll Growth - Employers reported a modest addition of 64,000 new jobs since October, consistent with previous months in 2025, with significant growth only in health care (up 46,000), social assistance (up 18,000), and construction (up 28,000) [5] - Other sectors, including leisure and hospitality, manufacturing, and transportation and warehousing, experienced declines in payrolls [5] Federal Employment Impact - A notable drop in federal employment occurred in October, with a loss of over 100,000 jobs, primarily due to a reduction of 162,000 in federal government positions [6] - Overall federal employment has decreased by over 270,000 since the beginning of the year [6] Job Vacancies and Market Dynamics - There was an increase in job vacancies reported by BLS, with the vacancy rate rising from 4.3% to 4.6%, suggesting challenges for employers in finding suitable candidates [9] Federal Reserve Implications - The report does not provide a clearer picture for the Federal Reserve regarding the labor market, as differing opinions exist on the need for interest rate adjustments in light of inflation concerns [10] - The report indicates more weakness than strength in the labor market, necessitating further data for a comprehensive economic outlook [11]