The unemployment rate rose in November, a warning sign for the health of a labor market that has been strained by federal layoffs and rising costs.

The jobless rate last month rose to 4.6%, up from 4.4% in September, the last month for which officials had a full picture of the labor force before the weekslong government shutdown. Employers added 64,000 jobs in November, but the federal government lost 105,000 jobs since September as workers hit by deferred resignations came off the payroll.

Wage growth also slowed notably, to a level not seen since 2021, a measure that comes at a time when an increasing number of Americans are expressing pessimism about the economy.

Analysts and policymakers had hoped Tuesday’s report would help clarify the state of the economy after months of conflicting signals. The report also included some belated data on October, collected from a survey of employers after the government shutdown ended.

Here’s What to Know About the Report:

— Interest rates: The report reinforces the Federal Reserve’s decision to cut interest rates last week. The Fed, on guard for signs that the labor market is on the cusp of cracking, has delivered a series of quarter-point interest rate cuts since September, weighing the labor market’s weaknesses against the risk posed by elevated inflation.

— Federal layoffs: Among the forces affecting the report was the end of the deferred resignation program for federal officials that the so-called Department of Government Efficiency launched this year.

— Off schedule: This report is late and a bit complicated, because of the 43-day government shutdown that ended last month. The November jobs data was supposed to be released Dec. 5. Tuesday’s report included November data but also the belatedly gathered October data. Publication of September jobs data was delayed more than six weeks. That report showed a greater-than-expected increase in hiring, but with uneven gains centered on the health care and hospitality industries, along with a rise in unemployment.

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This article originally appeared in The New York Times.

By Rebecca Davis O’Brien/Lexi Parra
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