US Adds 64,000 Jobs in November; Unemployment Rate Worsens to 4.6%

The figure was slightly above analysts' expectations of 50,000, ending a one-month gap in labour statistics caused by the extensive recent US government shutdown and easing uncertainty ahead of the Federal Reserve’s interest rate decision next month. 

However, a higher unemployment rate of 4.6% added a touch of gloom to the event after analysts had projected a level two basis points lower. The figure confirmed the Fed's lingering concerns expressed last week about a cooling labour market.

Labour data remain central

Labour market conditions remain central to policy after the Federal Open Market Committee lowered the federal funds rate target range to 3.50%–3.75% on 10 December.

With no October unemployment rate being disclosed, the November report is expected to carry added weight in shaping near-term monetary policy expectations. 

The BLS had previously reported an unemployment rate of 4.4% in September, up from 4.3% in August, at the time the worst level since October 2021.  

In November, employment rose in health care and construction, while the federal government continued to lose jobs in the wake of the 43-day shutdown at the start of Q4.

Market reaction was muted, with the benchmark 10-year US Treasury bond yield down two basis points to 4.150%. S&P500 futures were up 0.3% while Bitcoin was relatively flat, albeit trading with higher volatility, at about $87,000.