US Unemployment Rate Climbs to September-2021 High

The US unemployment rate edged down to 4.4% in December 2025, from a revised 4.5% in November, which had marked the highest level since October 2021. The reading also came in slightly below market expectations of 4.5%. The number of unemployed fell by 278,000 to 7.50 million, while employment increased by 232,000 to 163.99 million. Meanwhile, the labor force declined by 46,000 to 171.50 million, pushing the labor force participation rate down 0.1 percentage point to 62.4%. The broader U-6 unemployment rate, which includes discouraged workers and those working part-time for economic reasons, eased to 8.4% in December from 8.7% in November, pointing to some improvement in underlying labor market slack.

The US unemployment rate increased to 4.6% in November 2025 from 4.3% in August, exceeding market expectations of 4.4% and marking the highest level since September 2021. The number of unemployed stood at 7.8 million, little changed from September, while employment levels were also broadly stable. The labor force participation rate was little changed at 62.5%, reflecting a largely steady labor force. The broader U-6 unemployment rate in the United States, which includes discouraged workers and those working part-time for economic reasons, rose in November, reflecting a sharp increase in involuntary part-time employment.

The US unemployment rate increased to 4.4% in September 2025 from 4.3% in August, exceeding market expectations of 4.3% and marking the highest level since October 2021. The number of unemployed rose by 219,000 to 7.603 million, while the number of employed increased by 251,000 to 163.645 million. The labor force grew by 470,000 to 171.248 million, lifting the labor force participation rate by 0.1 percentage point to 62.4%. The broader U-6 unemployment rate in the United States, which includes discouraged workers and those working part-time for economic reasons, eased to 8.0% in September from 8.1% in August. This will be the last unemployment reading available before the December Fed meeting, as the BLS said Wednesday that October’s jobs report will not include an unemployment rate due to a lack of data collection during the government shutdown.