Jill On Money: Young grads feel the squeeze

"Between outright firing and early retirement, DOGE's efforts have reduced federal government employment by 271,000 since January. In November, job creation bounced back, with 64,000 new positions. However, there were revisions down for the August and September data, which means that job creation this year is averaging 55,000 per month. That's a big downshift from the first four months of the year, when job creation averaged 123,000, not to mention the 168,000 per month in 2024 and 216,000 in 2023."

"We also learned a few more things in the November report, namely that the unemployment rate rose to 4.6 percent from 4.4% in September, the highest rate we have seen since September 2021. Stephen Brown of Capital Economics said that the rise in the rate is less concerning when considering that it rose from 4.44% in September to 4.56% in November. Rounding issues aside, Brown notes that the rate increased for a good reason: there were more people in the labor force."

"With job creation moderating, even at a low level, the central bank could pause its rate cut campaign at the first meeting in January. Guy Berger, Workforce Economist in Residence at Guild, notes that the gradual cooling in employment is negatively impacting folks who need a job rather than those who are already employed. That affects the young more than prime-working-age folks."

The Federal Reserve cut interest rates by a quarter point, shifting focus to labor-market developments. The Bureau of Labor Statistics reported a 105,000 job loss in October largely from federal workers accepting deferred resignations and a 64,000 gain in November. Revisions to August and September push the 2025 average monthly job gain down to roughly 55,000. That represents a notable slowdown from early-year and prior-year averages. The unemployment rate rose to 4.6 percent, the highest since September 2021, driven in part by increased labor force participation. Slower hiring is hurting job-seekers and younger workers more than prime-age employees.

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