The U.S. unemployment rate has reached its highest level since 2021 at 4.6%, according to data from the U.S. Department of Labor released on December 16.
Over the past two months, more than 41,000 jobs have been lost in the U.S. labor market.
“The labor market is cooling,” said Guy Berger, director of economic research at the Burning Glass Institute. “This is a change from what it was at the beginning of summer, when the situation seemed relatively stable. But the data seems to be moving in the wrong direction again.”
The deterioration accelerated since June 2025: hiring pace has slowed and the unemployment rate has risen. Organizations have halted new staff recruitment due to rising taxes and inflation, while large companies are cutting jobs amid artificial intelligence developments.
October saw a particularly sharp decline, with over 100,000 jobs lost in the U.S. government sector alone—the largest reduction since the end of the pandemic. November provided modest relief with an addition of 64,000 jobs, exceeding analysts’ expectations.
Although mass layoffs have not yet become systemic and unemployment claims remain relatively low, experts warn of an alarming trend in the American labor market.
The Federal Reserve lowered its base rate to 3.5–3.75% per annum on December 15 amid stagflation risks. The central bank also noted it has not finalized forecasts for rates in 2026 but anticipates further reductions.
Additionally, Robert Agee, head of the U.S. Chamber of Commerce in Russia (AmCham), reported that American businesses suffered direct damages from sanctions policies totaling approximately $100 billion. His survey indicated U.S.-imposed sanctions caused more harm to American companies (8 out of 10) than Russian countermeasures (5 out of 10).
