The jobs market slowdown is here — and it's real

Economic IndicatorsThe jobs market slowdown is here — and it's realA delayed jumbo report serves as a cold reality check, showing that official data is catching up to a slump that many workers and employers already seeByCatherine BaabPublished 4 hours ago|Updated 1 hour agoShare to XShare to FacebookShare to RedditShare to EmailShare to LinkAlex Wong/Getty ImagesA long-delayed jobs report landed with a thud on Tuesday. After a record-long government shutdown delayed crucial Labor Department data for most of the fall, investors and policymakers finally got their first consolidated look at how the U.S. jobs market has been behaving beneath the surface. The timing was already awkward, with corporate announcements and private indicators increasingly pointing to accelerating layoffs — particularly among white-collar workers — even as official unemployment figures had remained relatively sedate.Now new data suggests that calm may finally be giving way to clear and open turmoil. Employers added just 64,000 jobs in November, far weaker than recent monthly averages, while the unemployment rate rose to 4.6%, its highest level since September 2021. Wage growth slowed notably, too, rising 3.5% from a year earlier — the weakest pace since before the pandemic.A picture of significant contractionBecause of the shutdown, the report is both late and unusually complex. It includes November data alongside belated October figures and revisions to earlier months. Those revisions further darken the picture. August payrolls were revised to a total loss of 26,000 jobs. Revisions across late summer and fall subtracted a total of 33,000 positions.One major (and perhaps obvious) drag came from federal employment. Government payrolls fell as longtime workers who had accepted deferred resignation offers earlier this year officially came off payrolls, contributing to a loss of roughly 100,000 federal jobs since September. Manufacturing also lost jobs in November, while gains remained concentrated in healthcare and service sectors — less discretionary categories that tend to remain immune to economic swings because demand is relatively inelastic.Even so, the new headline numbers may still understate the strain in parts of the labor market. Challenger, Gray & Christmas last week reported more than 71,000 job cuts in November — the highest November total in three years — with hiring falling to its lowest level in 15 years. Major employers from Verizon to Amazon and even McKinsey have announced or signaled further layoffs, with many of those layoffs tied explicitly to automation and AI adoption across administrative and similar functions.Such layoffs can take longer to show up in official unemployment data, because workers receive severance and so may delay going back on the job market. That lag is in part what Federal Reserve Chair Jerome Powell warned about last week when he said flaws in the Bureau of Labor Statistics’ “birth-death” model may be overstating job creation by a whopping 60,000 jobs a month.A paradox for markets The backdrop for stocks may be clearer than for individual workers, or even the U.S. government. Signs of labor market deterioration have the potential to push stocks higher by strengthening the Federal Reserve’s case for additional interest rate cuts in 2026. The Fed has already made three such cuts this year, operating from a view that downside risks to employment increasingly outweigh inflation concerns. Tuesday's data underlines precisely those labor-market concerns, which could clear the way for further rate cuts.At the same, the new data complicates President Donald Trump’s repeated assurances that the economy is in good shape, that inflation is low or nonexistent, and that labor market concerns are overblown.But more than anything, this delayed jumbo report serves as a cold reality check. It suggests official data may finally be catching up to a slowdown that many workers and employers already know themselves to be living through.📬 Sign up for the Daily BriefOur free, fast and fun briefing on the global economy, delivered every weekday morning.Sign me upKarawal Nagar – This AI-Powered hearing aid is a hit in India. Know why.Recommended by audiologistHear.com | SponsoredSponsoredLearn MoreUndoThe cost of hearing aids in Karawal Nagar might surprise youRecommended by audiologistHear.com | SponsoredSponsoredLearn MoreUndoMr. Bala’s Powerful Intraday Strategy Revealed – No More GuessworkJoin Bala Sir's Market Profile Masterclass and Book Your Profit By 11 AM, Sign Up Now For Trading Success.TradeWise | SponsoredSponsoredLearn MoreUndoStart Forex Trading. Get a 100% Welcome BonusFind out why you should join iFOREX, a regulated broker with over 25 years of experience. Open your iFOREX account and enjoy a 100% Welcome Bonus. Sign up today!iFOREX | SponsoredSponsoredSign UpUndoOption Trading: Mr.

Gopal Reveals His Powerful Laxman Rekha Strategy For FreeMaster the Art of Precise Option Trading with Gopal Sir's Laxman Rekha Strategy – for Free!TradeWise | SponsoredSponsoredLearn MoreUndoJoin new Free to Play WWII MMO War ThunderFight in over 2000 unique and authentic Vehicles. Fight on Land, on Water and in the Air. Join the most comprehensive vehicular combat game. Over 2000 tanks, ships and aircraft.War Thunder | SponsoredSponsoredPlay NowUndoPlay War Thunder now for freeFight in over 2000 unique and authentic Vehicles. Fight on Land, on Water and in the Air. Join the most comprehensive vehicular combat game. Over 2000 tanks, ships and aircraft.War Thunder | SponsoredSponsoredPlay NowUndoGreat deals await on Toothsi invisible aligners!Kickstart your smile makeover with FREE advanced dental kit/ MakeO skin treatments worth 10k!Toothsi by MakeO | SponsoredSponsoredBook NowUndoFlat 15k off on Toothsi invisible teeth aligners!Enjoy free Electric toothbrush & Teeth whitening pen worth 5K. EMI starting at ₹1499. Only till 31st December.Toothsi by MakeO | SponsoredSponsoredBook NowUndoSecret Functions In Cars No.8 Is In Every Car And Nobody Knows ItTipgalore | SponsoredSponsoredUndoBlind husband regains his sight, but doesn't tell his wife and he realizes he's been lied to for years.Novelodge | SponsoredSponsoredUndoExploring Dubai Luxury Villas: A Buyer’s GuideLuxury Dubai Villas | SponsoredSponsoredLearn MoreUndoI stumbled upon some kittens in my barn. When the vet arrived, he turned pale.Tipgalore | SponsoredSponsoredUndoThe rise of the 4-letter baby nameQuartzUndoNasdaq wants round-the-clock trading as Wall Street eyes 24/7QuartzUndoMountain Gear for Extreme ConditionsShop the best in outdoor gear and apparel. High-altitude jackets, trekking boots, and more for your next adventure.Trek Kit India | SponsoredSponsoredLearn MoreUndoYour fingers can tell you a lot about your personality. What kind of fingers do you have?Tips and Tricks | SponsoredSponsoredUndoWhy The Future of AI Belongs to the Teams Who Deliver It: Q&A with the CEO of Rocketlane, Sri GanesanTechBullion | SponsoredSponsoredUndoDecile’s Luma AI takes on ecommerce’s biggest analytics problemTechBullion | SponsoredSponsoredUndoOutdoor Clothing | Designed to Perform. Built to Endure.Engineered for high-output pursuits in unforgiving conditions. A selection of technical apparel that merges advanced materials with alpine-grade design—so you can move fast, stay dry, and push further, wherever the line takes you.Trek Kit India | SponsoredSponsoredShop NowUndoMOST POPULARTrump's economy is worse than it looks. Here's whyQuartzUndoMOST POPULARTrumps Stabschefin Susie Wiles zieht über Elon Musk herQuartzUndoHow Telidesk Saved My BusinessTelidesk is a game-changer for small businesses. Enjoy affordable phone service with 24/7 support. Try it free today.www.telidesk.com | SponsoredSponsoredUndoPresenting the all-new Kia Seltos. Everything’s new. Except the attitude.