Unemployment rate rises to more than 4%

NEW YORK (CBS, KYMA) - The U.S. Bureau of Labor Statistics just released the November jobs report.

It includes some delayed October data because of the government shutdown. The numbers show a mixed picture; job growth picked up, but the unemployment rate rose.

A multi-month jobs report offers mixed signals for the U.S. economy.

In November, employers added 64,000 jobs, down from Septmeber, but still beating expectations. A partial look at October, delayed by the government shutdown, showed a loss of 105,000 jobs, driven largely by federal workers who accepted buyouts.

"There's really no other way to slice and dice this than to say the nation's unemployment rate is rising, and jobs creation is lackluster if present at all. And that means that the job market is essentially flat," said Mark Hamrick, senior economist for Bankrate.

Hamrick says the biggest concern is the unemployment rate, which rose to 4.6%, the highest since 2021.

"We're losing economic activity here at the end of 2025, but some of that economic activity will be restored in the first quarter of 2026, but not all of it," Hamrick explained.

November saw job gains in health care and construction while some other sectors saw declines..

CBS News business analyst Jill Schlesinger says labor market trends are changing.

"There are signs the labor market is shifting, a lot of companies are not hiring with gusto, maybe it is uncertainty with tariffs or generalized anxiety over jobs remaining after AI takes hold, we don’t know, but the labor market is a bit stale right now," Schlesinger shared.

Hamrick hopes hiring, which he calls "ground zero" for the economy’s health can rebound quickly, saying, "Looking ahead to the new year, there are some reasons to be optimistic for a better showing for the U.S. economy. It may not be off to the races, but for, among other things, we are having lower short-term interest rates."

The Federal Reserve voted to cut interest rates last week without this data. These new numbers could give some members pause as they weigh the labor market and inflation when considering possible rate cuts in 2026.

The latest inflation number for November will be released later this week.