US unemployment hits highest level since 2021 as labour market cools

The US economy gains jobs in healthcare and construction as other sectors stagnate, shrink.Published On 16 Dec 2025The United States economy lost 41,000 jobs in October and November, and the unemployment rate has ticked up to its highest level since 2021 as the labour market cools amid ongoing economic uncertainty driven by tariffs and immigration policies.In November, the US economy added 64,000 jobs after shedding 105,000 in October, according to a report released on Tuesday by the Department of Labor’s Bureau of Labor Statistics.Recommended Stories list of 4 itemslist 1 of 4England’s resident doctors to strike for five dayslist 2 of 4US social media rules for tourists could have ‘chilling effect’ on travellist 3 of 4Korea Zinc plans $7.4bn US minerals refinery with Washington’s backinglist 4 of 4Why are French farmers objecting to EU-Mercosur trade deal?end of listThe unemployment rate rose to 4.6 percent, up from 4.4 percent in September. Because of the government shutdown in October and November, the US government was unable to gather key data used to gauge the state of the economy, including the unemployment rate for October.October’s job losses reflected the 162,000 federal workers who lost their posts, a result of deferred buyouts of their contracts, which expired at the end of September.In November, there was a loss of another 6,000 government jobs. Gains were seen in the healthcare, social assistance and construction sectors. Healthcare added 46,000 jobs – higher than the 39,000 jobs gained in the sector on average each month over the past 12 months.Construction added 28,000, consistent with average gains over the past year. The social assistance sector added 18,000 jobs.Transportation and warehousing lost 18,000. Manufacturing jobs are also on the decline. The sector shed 5,000 jobs in November after cutting 9,000 jobs in October following a 5,000-job loss in September.White House economic adviser Kevin Hassett told reporters on Tuesday to expect to see more manufacturing jobs in the next six months.