Government Shutdown Delays Jobs Reports

WASHINGTON, November 7, 2025 – The U.S. Labor Department will not publish its closely watched employment report for an unprecedented second straight month as the government shutdown continues¹. The data blackout deprives Federal Reserve policymakers of critical economic indicators ahead of their next interest rate decision.

Key Takeaways

Second consecutive month without official jobs report
Fed lacks key data for interest rate decisions
Private payroll data shows weakening labor market

Market reaction & context

The absence of official employment data comes as private indicators signal cooling labor demand. ADP reported just 42,000 jobs added in October, well below economist expectations⁵. Meanwhile, job cut announcements surged by 175% in October to more than 153,000, marking the worst month in 22 years according to Challenger, Gray & Christmas⁴.

The Bureau of Labor Statistics remains closed due to the shutdown, which has now entered its second month⁷. This marks the first time in modern history that two consecutive monthly employment reports have been delayed by government closures.

Fed policy implications

The data drought creates significant challenges for Federal Reserve officials as they weigh future monetary policy decisions. “With each day passing, there’s an increasing chance some October data on jobs and prices may not be released at all,” economists told Bloomberg³. The Fed typically relies heavily on employment data to gauge economic health and inflation pressures.

Central bank officials may need to depend more heavily on alternative data sources and private sector reports to assess labor market conditions. This could complicate their ability to calibrate interest rate policy with precision.

Economic uncertainty grows

The shutdown’s impact extends beyond official statistics, creating a “no hire” job market environment that leaves unemployed workers in limbo⁶. Career centers and other government employment services remain shuttered, further hampering job seekers’ prospects.

Private sector data suggests the labor market was already cooling before the shutdown began. The sharp decline in job additions and surge in layoff announcements point to increased economic uncertainty among employers.

Political stalemate continues

Senate Democrats and Republicans have failed to find a path forward to end the shutdown, with negotiations remaining stalled⁷. The prolonged closure has suspended publication of multiple key economic indicators beyond employment data.

The unprecedented nature of missing two consecutive jobs reports underscores the severity of the current political impasse. Markets and policymakers are operating with reduced visibility into one of the economy’s most critical metrics.

Not investment advice. For informational purposes only.