US unemployment rates rise to highest level since 2021

Washington DC - The US jobless rate picked up again in November, hovering at its highest level in four years, official data showed Tuesday in a report underscoring a labor market cooldown in the world's biggest economy.

The US jobless rate picked up again in November, hovering at its highest level in four years, official data showed Tuesday in a report underscoring a labor market cooldown in the world's biggest economy (stock image.)  © Unsplash/Marten Bjork

The report, delayed by a lengthy government shutdown, also indicated that the US economy lost 105,000 jobs in October.

Hiring picked up again in November to 64,000, but this was still a slower pace than before, according to the Labor Department figures.

"Employment rose in health care and construction in November, while [the] federal government continued to lose jobs," the department said.

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There was a sharp decline of 162,000 government jobs in October, "as some federal employees who accepted a deferred resignation offer came off federal payrolls," the report added.

In November, unemployment climbed to 4.6% from 4.4% in September.

There was no October jobless rate as officials were unable to retroactively collect data after the shutdown, which lasted till November 12.

The figures will be closely scrutinized for their potential bearing on US interest rates.

The Federal Reserve has slashed rates three times in a row this year as employment weakened, but hinted that the bar is likely higher for further cuts ahead.

A deteriorating jobs market could nudge the central bank to lower rates further to boost the economy, despite some policymakers' worries that higher inflation could become persistent.

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While President Donald Trump's tariffs have not caused a broad inflation surge, firms say they have caused business costs to rise and fueled uncertainty.

Elizabeth Warren, the top Democrat on the Senate Banking Committee, swiftly slammed Trump's "chaotic tariffs and failed economic policies," saying they were "hammering the labor market and harming workers."

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