The U.S. labor market is shifting gears.
November’s Employment Situation report shows job growth slowing to 64,000 positions and unemployment holding at 4.6%, signaling a transition from the red-hot hiring of recent years to a more measured pace. While health care and construction remain strong, other sectors are cooling, and wage growth is moderating without reversing. For employers, this means moving from “acute scarcity” to “selective competition”—a moment to rethink strategies for attracting and retaining talent in a changing landscape.
While layoffs surged to historic levels, these workforce adjustments reflect broader restructuring efforts and the integration of transformative technologies, such as artificial intelligence. Such changes, though disruptive in the short term, often pave the way for innovation and long-term efficiency. The labor market is clearly in transition, but the return to job growth and sustained wage increases offer encouraging signs that the economy is adapting and evolving, positioning itself for future opportunities.
The Numbers*:
- The U.S. economy added 64,000 jobs in November and the labor market has shown little net change since April; August and September revised down.
- The unemployment rate slightly increased to 4.6%, a slight change, yet still high.
- There were 7.7 million** open jobs.
- The labor force participation rate increased to 62.5%.
- The number of job quits in the U.S. Is at 2.9 million** slightly lower than September.
- Average hourly earnings rose by 0.5% month-over-month to $36.86.
- Average weekly hours worked ticked modestly up at 34.3 hours.
Industry Trends:
| Sector | November Job Change |
| Healthcare | +64,000 |
| Social Assistance | +18,000 |
| Federal Government | -6,000 |
| Manufacturing | Little to no change |
| Wholesale Trade | Little to no change |
Financial and mainstream media described the November jobs report as “messy” and “hard to read,” pointing to the dual impact of the prolonged government shutdown and the simultaneous release of October and November establishment data. However, for employers, the upshot is that financing and hiring conditions may gradually become more favorable over the next 12–18 months. However, this will likely coincide with a more competitive sales environment and greater scrutiny on headcount requests.
*Above represents updated September, October & November 2025 Data
** The figures above for openings and quits reflect the September Job Openings and October Labor Turnover Survey (JOLTS) 2025 report. These reports have not been updated as of this post.
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