US unemployment hits highest level since 2021 as labour market cools

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In December 2025, a US Department of Labor report revealed a cooling labor market. The US economy lost 41,000 jobs in October and November, with October seeing 105,000 jobs lost and November gaining 64,000. Consequently, the unemployment rate rose to 4.6 percent, the highest since 2021. October's job losses were largely due to the end of federal worker contracts because of the government shutdown. Job gains occurred in healthcare, social assistance, and construction, while losses were seen in transportation, warehousing, and manufacturing. The economic uncertainty is driven by tariffs and immigration policies.
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