The US unemployment rate rose to 4.6% in November, its highest since September 2021, signalling a weakening labour market. While the economy added 64,000 jobs in November, beating expectations of 50,000, a sharp downward revision to October's figures showed 105,000 jobs lost, outweighing November's gains. The drop was led by a steep fall in federal employment. This mixed picture, alongside recent Fed rate cuts and Chair Jay Powell's remark that job creation may be overstated, adds pressure for further easing in 2026. With inflation still high but growth steady, the Fed is likely to prioritise jobs. Bond markets responded with the two-year Treasury yield slipping to 3.49%, suggetsing the market expects a faster pace of rate cuts on the horizon.