US economy added 64,000 jobs in November but underemployment and stagflation cause concern: CEI analysis

The US Labor Department released its report today on jobs added to the economy in November 2025, a modest gain. But underemployment and the prospect of stagflation are concerns, say CEI labor and economy experts.

Sean Higgins, CEI research fellow:

“The Labor Department’s delayed report for November showed that while overall employment was up by 64,000 jobs, underemployment had risen sharply. The number of people working part-time for economic reasons — people who want full-time jobs but cannot find them — was 5.5 million, up 909,000 from September. On top of that, October showed a loss of 105,000 jobs, and August and September’s numbers were revised downwards by 33,000 jobs. In short, November’s modest gains partially obscure a weakening overall economy. Uncertainty over tariffs has made it hard for businesses to plan and invest, blunting hiring for full-time jobs.

“The total employment numbers likely would have been even worse but for a quirk in how the department counts federal jobs. Government employment fell by 6,000 in November and is down 271,000 total from when President Trump took office and began his effort to shrink the government workforce. The Labor Department doesn’t count as unemployed those federal workers who have been let go but are still receiving severance pay, meaning many thousands will likely show up in later jobs reports once that pay runs out. The recent 43-day federal government shutdown halted those payments, delaying that shift for two additional months.”

Ryan Young, CEI senior economist:

“Disco isn’t making a comeback, but stagflation might be. The labor market has essentially been stagnant this year, and the manufacturing sector has contracted for nine straight months. Meanwhile, inflation is refusing to go back down to its 2 percent target.

“A common ingredient in all these problems is tariffs, but President Trump is unlikely to change his mind. While the economy is not in freefall, today’s labor market numbers show that’s it’s been a rough year.”