The US jobless rate rose again in November, remaining at its highest level in four years, according to official data released on Tuesday. The report highlights a cooling labour market in the world’s largest economy. It was delayed due to a lengthy government shutdown that lasted until November 12.

The data also showed that the US economy lost 105,000 jobs in October. Hiring improved slightly in November, with 64,000 jobs added, but this was still slower than earlier periods.

Which sectors added or lost jobs?

According to the Labor Department, “Employment rose in health care and construction in November, while (the) federal government continued to lose jobs.”

Government employment saw a particularly steep fall in October. There was a decline of 162,000 government jobs, “as some federal employees who accepted a deferred resignation offer came off federal payrolls,” the department said.

Why did unemployment increase?

Unemployment climbed to 4.6 percent in November, up from 4.4 percent in September. There was no official jobless rate for October because officials were unable to retroactively collect data after the shutdown.

Economists say the shutdown played a major role. Samuel Tombs, chief US economist at Pantheon Macroeconomics, said, “Most of the further leap in the unemployment rate to 4.6 percent in November, from 4.4 percent in September, looks due to the federal government shutdown.”

Why is the report important for interest rates?

The figures are being closely watched for their impact on US interest rates. The Federal Reserve has cut rates three times in a row this year as employment weakened, but has suggested that further cuts will require stronger justification.

A worsening jobs market could push the central bank to lower rates again to support the economy, despite concerns among some policymakers that inflation could remain persistent.

What role are tariffs playing in the economy?

While President Donald Trump’s tariffs have not triggered a broad surge in inflation, businesses say they have increased costs and added uncertainty.

Elizabeth Warren, the top Democrat on the Senate Banking Committee, criticised the administration, saying Trump’s “chaotic tariffs and failed economic policies” were “hammering the labor market and harming workers.”

Is the US in a jobs recession?

Some economists believe the slowdown is severe. Heather Long, chief economist at the Navy Federal Credit Union, said, “The US economy is in a jobs recession. The nation has added a mere 100,000 in the past six months.”

She noted that most job growth has come from one area. Health care, she said, is “almost always hiring” as the US population ages.

Long added, “Almost all other sectors are flatlining or laying workers off right now. Businesses are not hiring as they adjust to tariffs, uncertainty conditions and AI.”

Are there other signs of economic cooling?

A separate report from the Commerce Department released on Tuesday showed that retail sales were flat in October at $732.6 billion.

The slowdown was driven by weaker sales at motor vehicle and parts dealers and at petrol stations. Spending at restaurants and bars also declined, with sales slipping 0.4 percent between September and October.

Together, the data points to a US economy that is losing momentum, with employment, hiring and consumer spending all showing signs of strain.