On Tuesday, the Bureau of Labor Statistics issued its highly anticipated employment report, delivering a stark reality check to the job market following a 43-day delay in data collection and publication.

The report indicated the U.S. economy shed 105,000 jobs in October before recovering roughly 64,000 jobs in November. The unemployment rate climbed to a four-year peak of 4.6% last month, increasing from 4.4% in September and 4% at the start of the year. This is the highest level since September 2021, when the country was still recovering from COVID-19 pandemic lockdowns.

Economists further observed that the data revealed wage growth at its slowest pace in years. While American earnings continue to rise faster than inflation, average hourly earnings increased at an annual rate of 3.5% in November, compared to a 3% inflation rate in September, representing the most sluggish pace since 2021.

Jeffrey Roach, chief economist at LPL Financial, stated the report pointed to a diverging economic landscape for wealthy and lower-income individuals.

“The affluent are fine, if not thriving, while lower income households struggle with high rent payments, rising delinquencies, and job uncertainty,” he said.

The stock market’s reaction on Tuesday morning was mixed but subdued after the report’s release, with investors appearing largely unperturbed: the tech-focused Nasdaq edged up slightly, the S&P 500 dipped modestly, and the Dow Jones remained largely flat.

Given that the Trump Administration has consistently emphasized the affordability crisis affecting Americans—a central campaign issue in 2024—Democrats have interpreted this report as evidence that Trump’s aggressive tariff policies, reduction of the federal government, and overall economic strategy have worsened the bleak picture presented.

“Donald Trump’s reckless policies have turned the job market into a living hell,” Democratic National Committee (DNC) Rapid Response Director Kendall Witmer said in a statement. “As working families grapple with sky-high prices — from groceries to holiday essentials — they’re also facing mass layoffs and rising unemployment, adding to an ever-growing list of worries about how to make ends meet in Trump’s economy.”

The DNC referenced a recent study released last week by Groundwork Collaborative, The Century Foundation, and AFT, which found prices for popular holiday gifts have jumped an average of 26 percent since last year, nearly nine times the general inflation rate.

Conversely, Labor Secretary Lori Chavez-DeRemer highlighted November’s job recovery and increasing private-sector wages in her Tuesday statement, downplaying October’s losses and the broader slowdown in wage growth.

“November’s jobs report shows our economy continues to gain momentum despite the economic mess President Trump inherited from the Biden administration and the reckless Democrat shutdown,” she said. “With 64,000 jobs added in November, more and more Americans are coming off the sidelines and working in the private sector.”

“THE BEST IS YET TO COME!” the White House declared on social media, echoing this positive focus.

Additional findings from the report are detailed below.

Manufacturing and young workers take a hit

The latest job figures again reveal a drop in manufacturing employment, with 5,000 positions lost in November and 9,000 in October. The White House has stated that revitalizing the American manufacturing sector is a key Administration goal, citing it as a reason for a policy move that disrupted stock markets and international trade relations for months earlier this year.

The Bureau of Labor Statistics’ monthly data has not yet demonstrated a beneficial impact on hiring within the industry.

Youth unemployment also worsened, with the rate for 16-to-19-year-olds surging to 16.3% in November from 13.2% in September, as high school graduates encounter greater difficulty securing employment. The overall jobless rate for 16-to-24-year-olds increased to 10.6%, the highest since 2021. However, for individuals aged 20 to 24, the unemployment rate decreased modestly to 8.3% in November from 9.2% in September, though it remains elevated compared to 2021 levels.

DOGE makes its mark

The October job decline partly reflects the impact of over 150,000 federal employees who accepted the Trump Administration’s buyout offer as part of its initiative to reduce the federal workforce. The majority were removed from the federal payroll in September.

Elon Musk’s Department of Government Efficiency (DOGE) assisted the Trump Administration in cutting the government payroll by 271,000 jobs since January, with the bulk of these reductions appearing in October’s data.

“Federal employment has retreated to the lowest level in over a decade, completely reversing the previous administration’s federal hiring frenzy,” Secretary Chavez-DeRemer said in her statement, framing the change as a successful realization of Trump’s agenda.

Retail sales decline

The gloomy job market news coincides with a Census Bureau report released Tuesday that showed a slowdown in retail sales ahead of the holiday season, with sales holding flat after a 0.1% rise in September.

This marks the softest monthly performance since May and contrasts sharply with 2024, when average monthly retail sales growth was approximately 0.5%.

With consumer sentiment falling to its lowest point during the government shutdown, it may signal challenges for retail sales, which constitute 70% of U.S. economic activity.

Nevertheless, this data comes after a report on Thanksgiving weekend indicated a record 202.9 million consumers shopped over the five-day holiday period, up from 197 million in 2024.