The latest U.S. labor market data, released after delays tied to the federal government shutdown, points to a continued cooling in hiring as 2025 comes to a close. The November Employment Situation report from the Bureau of Labor Statistics (BLS) shows modest job growth, rising unemployment, and increasing underemployment, trends that matter most for employers relying on hourly, frontline labor.

In November, employers added 64,000 jobs, extending a pattern of subdued hiring seen throughout much of the year. The unemployment rate rose to 4.6 percent, while more workers reported working part time because they could not find full-time roles. Together, these signals point to a labor market that is loosening overall but behaving very differently depending on industry and operating model.

What the numbers tell us

Job growth remains well below historical averages, suggesting many employers are slowing hiring or holding headcount steady amid demand uncertainty. This level of growth is not enough to materially expand the workforce and reinforces the broader loss of labor market momentum that began earlier this year.

The rise in unemployment reflects longer job searches and fewer immediate opportunities, particularly for workers dependent on consistent hours. At the same time, higher underemployment indicates growing schedule volatility, which often leads workers to seek multiple jobs or move quickly between roles.

What this means for warehouse operators

Transportation and warehousing employment declined again in November, extending pressure across distribution centers, fulfillment operations, and logistics networks. As freight volumes normalize and cost discipline remains high, many warehouse operators are limiting full-time hiring while still needing labor flexibility during demand spikes.

For warehouse leaders, this environment increases the importance of dynamic labor models. Operators that can scale staffing up or down quickly, without long lead times or permanent cost commitments, are better positioned to handle variability while protecting margins. A softer labor market may improve candidate availability, but speed and reliability remain critical differentiators.

What this means for last-mile and delivery teams

Last-mile and delivery operations continue to feel the downstream effects of slower transportation hiring. Declines in warehousing and logistics employment signal fewer permanent roles and more reliance on flexible labor strategies, especially during seasonal or promotional peaks.

As underemployment rises, more workers are seeking supplemental income, creating opportunity for last-mile operators, but only if onboarding is fast, shifts are predictable, and pay is transparent. Companies that can quickly match workers to routes and time windows will have a clear advantage as competition for reliable drivers remains strong.

What this means for leisure and hospitality employers

Employment in leisure and hospitality was largely flat in November, reflecting uneven consumer demand and cautious staffing decisions across restaurants, hotels, and entertainment venues. While hiring has not collapsed, growth has been inconsistent, and operators are balancing labor needs against tighter margins.

For hospitality employers, a cooling labor market does not eliminate hiring challenges. Workers are increasingly selective, prioritizing consistent schedules, dependable hours, and fast access to shifts. Rising underemployment elsewhere in the economy may expand the available workforce, but retention will depend on how well roles fit workers’ availability and income needs.

Why this report matters for hourly workforce planning

Across warehousing, last-mile delivery, and hospitality, November’s data highlights a shift from labor scarcity to labor fluidity. Workers may be more available, but they are also more likely to juggle multiple roles, switch quickly, and prioritize flexibility over long-term commitments.

In this environment, successful operators will focus less on headline labor market strength and more on execution - reducing time to fill, improving shift match quality, and maintaining visibility into real-time labor performance.

Looking ahead

With October data missing due to the federal shutdown, November offers an imperfect but valuable snapshot of labor conditions heading into 2026. What’s clear is that hiring momentum has slowed, and volatility remains elevated for industries built on hourly labor.

For warehouse, last-mile, and hospitality teams, the months ahead will reward flexibility. The ability to adapt staffing models quickly, respond to demand shifts, and meet workers where they are will define who stays resilient in a cooler labor market.