San Antonio Job Market Shows Signs of Weakness Amid Economic Uncertainty

A scenic view of San Antonio reflecting the job market landscape.

San Antonio, December 17, 2025

The recent job market report indicates a decline in the San Antonio job market, reflecting broader economic difficulties. In November, only 64,000 jobs were added, yet the unemployment rate rose to 4.6%, the highest since 2021. A notable drop in federal employment contributed to job losses in October, while sectors like healthcare show growth. Economic indicators suggest tightening labor conditions, worsened by a delayed data release following a government shutdown. The Federal Reserve’s response to these developments highlights ongoing concerns regarding economic stability.

San Antonio Job Market Shows Signs of Weakness Amid Economic Uncertainty

The U.S. economy added 64,000 jobs in November 2025, but the unemployment rate rose to 4.6%, marking the highest level since 2021. This data comes after a significant delay due to a 43-day government shutdown that halted vital economic updates.

November Job Gains and Unemployment Rate

In November, the modest job growth of 64,000 was overshadowed by an increase in the unemployment rate to 4.6%, up from 4.4% in September. Although job gains surpassed the forecast of 40,000, the rising unemployment rate signifies a cooling labor market that raises concerns about the overall economic health. This increase in jobless figures marks the highest point since 2021.

October Job Losses and Federal Workforce Reductions

October was a challenging month for employment, losing 105,000 jobs primarily due to a reduction of 162,000 federal workers—many of whom opted for buyouts at the fiscal year’s end on September 30. These changes in federal employment significantly influenced job market trends during that period.

Sector-Specific Employment Trends

The healthcare sector emerged as a leader in job creation in November, adding 46,000 positions and surpassing the average monthly gain of 39,000 over the past year. Construction also contributed positively, adding 28,000 new jobs, consistent with average growth. However, the manufacturing sector continued to struggle, losing 5,000 jobs in November, following a 9,000 job loss in the previous month.

Wage Growth and Consumer Spending

Wage growth has exhibited a downward trend, with average hourly earnings increasing by only 0.1% from October, representing the smallest gain since August 2023. Year over year, wages have risen by 3.5%, the weakest annual increase since May 2021. Retail sales for October remained flat, slightly below expectations, indicating cautious consumer spending amid persistent economic uncertainties.

Impact of Government Shutdown on Data Collection

The prolonged 43-day government shutdown delayed critical economic data releases, including the unemployment rate for October, complicating efforts to accurately assess the labor market’s current state. Economists and policymakers have found it challenging to draw comprehensive conclusions from the disrupted data, leaving some uncertainty in the economic outlook.

Federal Reserve’s Response to Economic Indicators

In light of the cooling economic indicators, the Federal Reserve has cut interest rates for the third consecutive time, aiming to stimulate the labor market. However, economists caution that the effects of the shutdown may skew the data, complicating any analysis of the true economic climate.

Conclusion

The current U.S. labor market reflects signs of weakness, with rising unemployment rates and job losses in specific sectors. While certain industries, notably healthcare and construction, continue to grow, the overall economic outlook remains uncertain. The government shutdown has further obscured the accurate assessment of economic health and employment statistics, leaving local entrepreneurs and small businesses to navigate a shifting economic landscape.

FAQ

What was the unemployment rate in November 2025?

The unemployment rate in November 2025 rose to 4.6%, the highest level since 2021.

How many jobs were added in November 2025?

The economy added 64,000 jobs in November 2025.

Which sectors saw job growth in November 2025?

The healthcare sector added 46,000 jobs, and construction added 28,000 jobs in November 2025.

What caused the job losses in October 2025?

October 2025 experienced a loss of 105,000 jobs, primarily due to a reduction of 162,000 federal workers who took advantage of deferred buyouts at the end of the fiscal year.

How did the government shutdown affect economic data collection?

The 43-day government shutdown in October and November delayed the release of key economic data, including the unemployment rate for October, making it challenging to assess the current state of the labor market accurately.

Key Features

Feature Details
Unemployment Rate 4.6% in November 2025, highest since 2021.
Job Gains in November 64,000 jobs added, exceeding economists’ forecast of 40,000.
Job Losses in October 105,000 jobs lost, primarily due to federal workforce reductions.
Healthcare Sector Growth Added 46,000 jobs in November, surpassing the average monthly gain of 39,000.
Manufacturing Sector Decline Shed 5,000 jobs in November, following a loss of 9,000 jobs in October.
Wage Growth Average hourly earnings increased by 0.1% from October, marking the smallest gain since August 2023.
Retail Sales Remained flat in October, slightly underperforming expectations.
Government Shutdown Impact Delayed the release of key economic data, including the unemployment rate for October.
Federal Reserve Response Cut interest rates for the third consecutive time to bolster the labor market.

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STAFF HERE SAN ANTONIO WRITER
Author: STAFF HERE SAN ANTONIO WRITER

The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

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