US Unemployment Hits Highest Level Since 2021 as Labour Market Cools

US unemployment rises to 4.6% in November, highest since 2021, as job growth slows and federal layoffs continue.

The United States unemployment rate rose to 4.6% in November, the highest since September 2021. Analysts note this increase follows government-related disruptions in October and reflects ongoing shifts in the labor market. 

Crypto analyst, Michael van de Poppe noted that this environment could support bullish trends for scarce assets like Bitcoin as the Federal Reserve maintains economic stimulus measures.

US Unemployment and Labor Market Trends

Nonfarm payrolls grew by 64,000 jobs in November after a decline of 105,000 in October. The October drop was largely due to deferred buyouts of federal employees, which affected government payrolls. Most federal workers affected by the buyouts left at the end of September, while some government positions continued to shrink in November.

Private sector employment showed moderate growth. Healthcare added 46,000 jobs in November, while construction employment increased by 28,000. Social assistance positions grew by 18,000. Transportation and warehousing jobs declined by 18,000, and manufacturing lost 5,000 positions. The total job losses across October and November reached 41,000.

Federal Reserve and Economic Response

The Federal Reserve recently cut the benchmark interest rate by 25 basis points to a range of 3.5% to 3.75%. Fed Chair Jerome Powell noted that the labor market continues to face downside risks and that borrowing costs may remain steady until clearer data emerges.

Economists emphasize that the unemployment rate may not fully reflect economic conditions due to data disruptions during the government shutdown. The Bureau of Labor Statistics adjusted its calculations to account for missing October data. Kathy Bostjancic, chief economist at Nationwide, noted that the rate should be interpreted cautiously because standard errors are higher than usual.

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Crypto Market Reaction

Michael van de Poppe noted that rising unemployment could benefit scarce assets such as Bitcoin. He explained that internal economic activation may trigger more liquidity, creating bullish conditions for cryptocurrencies.

Bitcoin and other digital assets experienced short-term volatility as investors reacted to labor market updates. On-chain data shows increased Ethereum accumulation by whales, while Bitcoin faced selling pressure. Analysts point out that liquidity, rather than panic, is driving market moves in digital currencies.

Sector-Specific Trends

Average hourly earnings rose 3.5% year-over-year in November, down slightly from October’s 3.7% increase. Slower wage growth may affect consumer spending, which remains central to economic activity.

Federal government employment decreased by 6,000 positions in November. Overall federal employment is down by 271,000 since its peak in January 2025. Private industries such as healthcare and construction continued moderate growth. Analysts expect continued sector-specific variations in job creation as the economy adjusts to trade policies and other fiscal measures.

Part-time employment for economic reasons increased to 5.5 million, up from 4.6 million in September. Economists attribute this rise to businesses adjusting staffing during economic uncertainty. The labor market trends suggest cautious optimism in private employment sectors, while government and manufacturing roles continue to face pressure. Market analysts are monitoring these shifts closely for implications on both traditional and crypto markets.