The U.S. unemployment rate climbed to 4.6% in November. It’s the highest level since 2021, according to newly released federal data.
While the economy did add 64,000 jobs, it follows a significant loss of 105,000 jobs in October, leaving the labor market weaker heading into winter. New Jersey has been somewhat insulated from rising unemployment, but the national showdown is starting to show up closer to home.
New Jersey unemployment claims jumped last week—rising to 12,478 filings, up from 10,066 the week before. Unemployment claims are one of the earliest indicators of layoffs, often spiking before broader job losses appear in monthly reports.
At the national level, unemployment claims also rose, climbing to 236,000. After years of aggressive hiring following the Covid-19 pandemic, the rise in unemployment shows a growing trend of employers pulling back.
The November jobs report doesn’t deliver great news. Hiring has slowed sharply since the summer while wage growth has cooled. Prior months’ numbers were revised lower, revealing fewer jobs than previously reported.
Health care and construction continue to add workers, but several sectors—including transportation, warehousing, manufacturing and leisure—are shedding jobs at alarming rates.
Unemployment has now risen at a steady rate throughout the year, up from 4% in January when President Trump took office. More Americans are looking for work, but fewer jobs are available.
For New Jersey, the rise in unemployment claims suggests the slowdown is no longer outside state borders. Layoffs are beginning to surface. And while job losses remain modest by historical standards, the direction matters.
The labor market is no longer running hot. Instead, it is bending. Heading into the holidays, many households are feeling that pressure.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.