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The US unemployment rate rose to 4.6 per cent in November, the highest level in more than four years, in an indication of weakness in the labour market.
The world’s biggest economy added 64,000 jobs in November but shed 105,000 in October, bolstering the case for the Federal Reserve to cut interest rates further in the new year.
While Tuesday’s figure for new posts in November beat expectations of 50,000 among economists polled by Bloomberg, the loss of jobs in October was far greater.
The unemployment figure was the highest since September 2021 and compared to a rate of 4.4 per cent in September 2025. The BLS did not provide an October figure due to the recent government shutdown.
Short-term US government bond yields, which are sensitive to monetary policy expectations, slipped after the report. The two-year Treasury yield fell 0.02 percentage points to 3.49 per cent.
Two quarter-point interest rate cuts are currently being priced in by the end of 2026.
The release from the Bureau of Labor Statistics provides a glimpse into the health of the US economy after the government shutdown prevented the collection of data.
The BLS report comes after the Fed cut rates last week for the third time this year, taking borrowing costs to a three-year low, following a meeting at which policymakers sparred over prioritising risks to inflation or employment.
Tuesday’s figure is likely to be revised, however, after Fed chair Jay Powell said job numbers were probably being overestimated by as much as 60,000 a month.
The central bank is also under heavy pressure from President Donald Trump to cut interest rates further and faster.
This is a developing story
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