U.S. employers added a modest number of jobs in November, but the unemployment rate climbed to its highest level in more than four years, signaling a labor market that continues to cool despite pockets of hiring.
Payrolls rose by about 64,000 jobs last month, according to data released Tuesday by the Labor Department. While the increase marked a return to job growth after losses in October, it fell well below the pace seen earlier in the year and was not enough to prevent unemployment from rising to 4.6 percent.
The combination of slight job gains and rising unemployment points to an economy that is still creating jobs, but not quickly enough to absorb a growing pool of workers. Economists said the report suggests demand for labor is weakening, even as widespread layoffs have yet to materialize.
November’s gains followed a revised loss of roughly 105,000 jobs in October, driven in part by cuts in government employment. The rebound offered some relief, but analysts cautioned that the broader trend remains one of slowing momentum in the labor market.
In recent months, job growth has steadily decelerated while the unemployment rate has edged higher, reflecting tougher conditions for job seekers. More people are entering or re-entering the workforce, but hiring has not kept pace, pushing the jobless rate upward.
The report also comes after disruptions to federal data collection earlier this fall, which economists say may have contributed to volatility in recent employment figures. Even so, most agree the underlying signal is clear: the labor market is no longer the engine of strength it was earlier in the economic recovery.
Markets reacted cautiously to the data. U.S. stock futures ticked higher following the release, as investors weighed the possibility that rising unemployment could give the Federal Reserve more room to cut interest rates in the months ahead.
For policymakers, the latest snapshot underscores a growing challenge. Inflation has cooled from its peak, but remains elevated, while the labor market — long a pillar of economic resilience — is showing increasing signs of strain. As unemployment rises and job growth slows, pressure is likely to build on the Fed to act to prevent a sharper deterioration in employment.
