Private Hiring Continued in Fall as Federal Job Cuts Pushed Unemployment Higher

Delayed Labor Department data show private-sector job growth in October and November even as shrinking government payrolls drove the unemployment rate up to 4.6 percent.

By yourNEWS Media Newsroom

Private-sector employers continued to add jobs in October and November despite a sharp reduction in government payrolls that contributed to a rise in the national unemployment rate, according to long-delayed figures released Tuesday by the U.S. Department of Labor.

The report showed the unemployment rate climbed to 4.6 percent in November, higher than the 4.5 percent economists had expected, as declines in federal employment more than offset gains in the private sector. The U.S. economy added 64,000 jobs in November, exceeding forecasts of roughly 50,000.

The data release also included revised figures for October, a month for which the government said it would not issue a standalone unemployment report because a key survey was not conducted during a federal shutdown. Those newly released figures show the economy lost 105,000 jobs in October, a contraction driven largely by a steep drop in federal employment.

According to the Labor Department, federal government payrolls declined by 162,000 jobs in October. Officials said the reduction was primarily related to workers who had accepted deferred resignations earlier in the year and were removed from payrolls during the month. Federal employment fell by an additional 6,000 jobs in November. Since January, federal payrolls have declined by a total of 271,000 positions.

In contrast, private-sector employment posted gains in both months. Private employers added 52,000 jobs in October, following a strong increase of 105,000 in September. Taken together, the three-month average gain of 75,000 private-sector jobs points to what economists described as a healthy pace of hiring given broader economic conditions.

The report also showed an increase in the labor force participation rate in November, indicating that more Americans either entered the workforce or resumed looking for jobs. Economists said that rise in participation helped explain why the unemployment rate increased even as overall job creation exceeded expectations.

The combined data suggest that while government downsizing continues to weigh on headline employment figures, private-sector hiring has remained resilient heading into the final months of the year.