U.S. Unemployment Rises to Highest Level Since 2021

Summary

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WSJ What’s News – PM Edition

Episode: U.S. Unemployment Rises to Highest Level Since 2021

Date: December 16, 2025
Host: Sabrina Siddiqui

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Overview

This episode dives into a broad mix of developing business and policy stories, anchored by the headline that the U.S. unemployment rate has hit a four-year high at 4.6%. The show also investigates the fallout from policies to boost IPOs and the resulting stock scams, the EU's shift away from a stricter gas car ban, and major moves in corporate and political spheres. Key interviews with WSJ reporters frame the conversation, providing insight into economic uncertainty, market regulation, the global electric vehicle transition, and headline-grabbing antitrust and foreign policy dramas.

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1. U.S. Unemployment Rises to 4.6%

Main story discussion: [00:18]–[02:45]

• Breaking Data:
  • November unemployment up to 4.6% — the highest since 2021.
  • 64,000 jobs added in November following 105,000 jobs lost in October.
  • Data still affected by government shutdown, so October numbers are “patchier.”
• Expert Analysis:
  • Ashby Jones (WSJ Deputy Economics Editor) on the jobs report:
    • “The 64,000 number is a little bit better than expected. 4.6 is maybe a little bit worse than expected. So taken together... it's somewhere right in this mushy middle, which frankly... is like where we've been with jobs for the past six months.” (02:06)
    • Some relief: private sector hiring appears to be stabilizing.
      • “This is a pretty solid number. It's not great, it's not awful, but it kind of hits the mark and I think tells us that the job situation hasn't fallen off a cliff. And that was the big fear from a lot of people.” (02:31)
  • Federal Reserve implications:
    • No major shift seen in January rate cut prospects; expectations remain at about 25%.
  • Stock Market Reaction:
    • Dow down 0.6%, S&P down 0.2%, Nasdaq up 0.2%.

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2. IPO Boom and Risks: Market Loosening Fuels Stock Scams

In-depth segment: [03:45]–[06:26]

• Policy Shift:
  • SEC aims to make it easier for small firms (Emerging Growth Companies) to go public by extending eligibility and reducing regulatory requirements.
  • Chairman Paul Atkins: Suggests guaranteed minimum years for companies to maintain “emerging growth” status, even if they surpass certain revenue thresholds.
• Risks Identified:
  • Fewer auditing/disclosure requirements correlate with increased fraud.
  • Since late September, SEC has suspended 12 company stocks for suspected manipulation, more than the total in the previous four years combined.
    • “All 12 companies were emerging growth companies under the JOBS act... These aren't American companies. They're all from Asia. And in five of the cases, they're either from Hong Kong or China.” – Jonathan Weil (WSJ Reporter and Heard on the Street Columnist) (05:18)
  • SEC responds that it’s “unreasonable to conclude emerging growth companies in general are at a higher risk of violating securities laws.” (06:13)

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3. Congressional Standoff on Healthcare Subsidies

Political update: [06:31]–[07:23]

• Republican leadership closes the door on renewing Affordable Care Act subsidies before year end.
  • House Speaker Mike Johnson: "No vote tomorrow on a bipartisan proposal to extend the subsidies for two years."
  • Political tension: Centrist Republicans in competitive districts warn about the risk of higher insurance premiums.
  • Scheduled Republican bill aims to expand association health plans and lower out-of-pocket costs for low-income ACA recipients.

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4. European Union Retreats from Gas Car Ban

International development: [07:55]–[10:11]

• Policy Reversal:
  • EU considers watering down rules that would have banned the sale of all new combustion engine cars by 2035.
  • Pullback driven by unexpectedly slow consumer uptake of EVs and heavy industry pressure.
    • “Globally, we're seeing less uptake from consumers on EVs than some policymakers had expected. Auto companies in Europe have been saying for some time now that they think this transition is too fast.” – Kim McCrail (WSJ Brussels Reporter) (08:21)
    • Ford expects $19.5 billion in charges, largely related to EV business.
• Proposal Details:
  • Original rule required a 100% CO2 reduction in new cars by 2035.
  • New proposal: Lower that to 90%, allowing continued sales of:
    • Plug-in hybrids, range extenders, and even some combustion engines if aided by low-carbon technologies.
    • “...it opens up the ability for companies to continue selling a range of different technologies… and internal combustion engines in addition to electric vehicles.” – Kim McCrail (09:20)
• Next Steps:
  • Proposal still needs approval from member states and the European Parliament.

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5. Pepsi’s Pricing Tactics & Antitrust

Business investigation: [10:11]–[10:54]

• Antitrust Suit Details:
  • FTC lawsuit accuses Pepsi of orchestrating price rises at competing retailers to help Walmart remain the price leader.
  • Lawsuit revealed after push from an anti-monopoly group; FTC dropped the case during Trump’s administration.
  • Allegations: Pepsi tracked retail prices, offered Walmart special promotions, and raised prices at other stores to shield Walmart’s low-pricing edge.
  • Pepsi and Walmart both deny wrongdoing; claim compliance and commitment to low prices, respectively.

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6. U.S.–Israel Tensions Over Gaza Ceasefire

International news update: [10:54]–[11:36]

• Diplomatic Tensions:
  • U.S. warns Israel after an airstrike that killed a Hamas commander, reportedly frustrating President Trump, who feared disruption to his “major achievement” ceasefire.
  • The U.S. was not given prior notice of the strike.
  • Trump publicly denies his frustration; Israeli official says there is “no disagreement” between Netanyahu and Trump over Gaza.

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Notable Quotes & Moments

• Ashby Jones on Labor Market:
  • “It's somewhere right in this mushy middle... which frankly... is like where we've been with jobs for the past six months.” (02:06)
• Jonathan Weil on Stock Scams:
  • “All 12 companies were emerging growth companies under the JOBS act... These aren't American companies. They're all from Asia...” (05:18)
• Kim McCrail on Europe’s EV Transition:
  • “Globally, we're seeing less uptake from consumers on EVs than some policymakers had expected...” (08:21)
• On the SEC response:
  • “It's unreasonable to conclude that emerging growth companies in general are at a higher risk of violating securities laws.” (06:13)

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Key Timestamps

• 00:18: Show opens with top headlines
• 01:10: U.S. jobs report summary
• 02:06: Ashby Jones Q&A on labor data
• 03:45: Stock market and IPO environment
• 04:50: Definition and risks of “emerging growth companies”
• 07:23: ACA subsidies congressional update
• 07:55: EU gas car policy change
• 10:11: Pepsi/Walmart antitrust suit details
• 10:54: U.S.-Israel Gaza ceasefire update

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Transcript

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[Sabrina Siddiqui]

The US unemployment rate rose to 4.6% in November, its highest level in more than four years. Plus how a push for more IPOs has helped cause a wave of stock scams and and the European Union is reversing course on banning new gas powered cars.

[Kim McCrail]

Globally, we're seeing less uptake from consumers on EVs than some policymakers had expected.

[Sabrina Siddiqui]

It's Tuesday, December 16th. I'm Sabrina Siddiqui for the Wall Street Journal, sitting in for Alex Osila. This is the PM edition of what's news, the top headlines and business stories that move the world today. In a breaking news update, we're exclusively reporting that Warner Bros. Discovery will tell shareholders to reject Paramount's latest bid for the company. That's according to people familiar with the matter. Warner plans to recommend that shareholders support the existing deal with Netflix instead, and that recommendation could come as soon as tomorrow. For more on this story, go to WSJ.com the U.S. unemployment rate rose to 4.6% in November, its highest level in more than four years. And the Labor Department says employers added 64,000 jobs last month after they cut 105,000 jobs in October. Economists have been waiting for these latest numbers, which are some of the most important to be disrupted by the government shutdown. Today's report includes November jobs data and a patchier readout from October. Ashby Jones, the Wall Street Journal's deputy economics editor, tells WSJ correspondent Shelby Holiday during a live Q and A this morning that this report still doesn't add a ton of clarity to what's going on now in the labor market.

[Ashby Jones]

The 64,000 number is a little bit better than expected. 4.6 is maybe a little bit worse than expected. So taken together, it's a, it's, it's not an awful report, but it's certainly not a great report either. It's somewhere right in this mushy middle, which frankly, Shelby, is like where we've been with jobs for the past six months.

[Sabrina Siddiqui]

But there are some reassurances. For example, hiring in the private sector showed signs of stabilizing.

[Ashby Jones]

This is a pretty solid number. It's not great, it's not awful, but it kind of hits the mark and I think tells us that the job situation hasn't fallen off a cliff. And that was the big fear from a lot of people.

[Sabrina Siddiqui]

The report isn't seen as signaling big changes to the Federal Reserve's thinking on whether to continue cutting interest rates. Expectations for a January rate cut didn't change much after the report, staying at about 25%, according to CME Group data. To hear more from Ashby Jones and lead markets reporter Gunjan Banerjee on the jobs report, go to WSJ.com video Stock markets were mixed after the jobs report, which pointed to one of the weakest American labor markets in years. The Dow fell 0.6% and the S&P lost 0.2%. The Nasdaq rose 0.2%. US regulators have sought to reverse the decline in stock exchange listings by loosening rules for smaller firms. But that strategy carries an inherent trade off. Lighter oversight can make markets more vulnerable to stock scams. That tension is now playing out at the securities and Exchange Commission under Chairman Paul Atkins. Jonathan Weil, a Wall Street Journal reporter and Hurt on the street columnist covering finance, joins us now with more. Jonathan, you report that this 2012 law, known as the JOBS act, tried to make it easier for smaller companies to go public as a way to encourage more IPOs. What does the SEC want to do now to make that process even easier?

[Jonathan Weil]

It wants companies to have the designation of emerging growth companies for longer than they can have right now. Under the current rules, a company could be designated as an emerging growth company for as long as five years. But if they hit certain size thresholds, like if they go past $1.235 billion of revenue, then they automatically stop being emerging growth companies. Paul Atkins, the SEC chairman, has suggested that maybe they should be guaranteed a certain minimum number of years, and that would essentially expand their eligibility to be exempt from any number of different accounting, auditing or disclosure requirements.

[Sabrina Siddiqui]

How would you define emerging growth companies? What exactly are they?

[Jonathan Weil]

Emerging growth companies are companies that the SEC wants to give special treatment to. Proponents of these exemptions want to create the impression that these are small, entrepreneurial companies worthy of support from the public. And some of them may fit that bill. At the same time, just because they're called emerging growth companies doesn't necessarily mean that they hold great promise.

[Sabrina Siddiqui]

And what risks have emerged in the aftermath of the JOBS Act?

[Jonathan Weil]

If you have fewer auditing and accounting and disclosure requirements, you may have more bad actors. And in fact, Atkins push to expand eligibility for the JOBS act exemptions has coincided with a crackdown on certain types of stock frauds targeting individual investors. Since late September, the SEC has suspended trading in 12 company stocks, which is actually a lot for the SEC. That's more than the previous four years combined. They were citing potential stock manipulation. All 12 companies were emerging growth companies under the JOBS act, which highlighted how much easier it was for them to go public than they otherwise would have been able to. And even though the JOBS act, that acronym stands for jumpstarter business startups, these aren't American companies. They're all from Asia. And in five of the cases they're either from Hong Kong or China.

[Sabrina Siddiqui]

How did the SEC respond to your story?

[Jonathan Weil]

Well, they responded to my questions by saying that it's unreasonable to conclude that emerging growth companies in general are at a higher risk of violating securities laws.

[Sabrina Siddiqui]

That was the Wall Street Journal's Jonathan Wild. Jonathan, thank you.

[Jonathan Weil]

Thank you for having me.

[Sabrina Siddiqui]

Republican leaders in Congress are signaling that they are closing the door on a deal to renew expiring Affordable Care act subsidies before the end of the year. House Speaker Mike Johnson said there would be no vote tomorrow on a bipartisan proposal to extend the subsidies for two years. Centrist Republicans have pushed to vote on extending the subsidies to try to prevent sharp increases in insurance premiums. Many of those lawmakers are up for reelection in competitive districts and they're warning that a big increase in healthcare costs carries political risks. The Republican bill that is scheduled for a House vote tomorrow would expand association health plans for small employers and try to lower out of pocket costs for low income Americans on ACA plans. Coming up, did Pepsi try to help Walmart beat rival stores on price? That's after the break.

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[Sabrina Siddiqui]

The European Union is proposing watering down rules that would have effectively banned the sale of new combustion engine cars starting in 2035. It's the latest sign of the electric vehicle pullback and comes after heavy pressure from the auto industry. Kim McCrail, a Wall Street Journal reporter in Brussels, says this latest backtrack shows how much more difficult the transition away from gas cars has been than policymakers thought it would be.

[Kim McCrail]

Globally, we're seeing less uptake from consumers on EVs than some policymakers had expected. Auto companies in Europe have been saying for some time now that they think this transition is too fast for. One example of the challenging transition is what happened yesterday with Ford, which said that it was expecting to take about $19.5 billion in charges, mainly tied to its electric vehicle business. But then the other thing that's happening that's more unique to Europe is that there's a broader discussion about the regulatory environment that companies face in the European Union. A pretty heavy flow of regulation over recent years, some of them to address climate change. And there is some pullback happening right now.

[Sabrina Siddiqui]

The proposal still needs approval from the EU's member states and the European Parliament before it becomes law. European officials say the plan keeps a strong market signal in favor of zero emission vehicles while also giving carmakers more flexibility.

[Kim McCrail]

So what was in the original rules was that starting in 2035, sales of new cars had to have an overall reduction of 100% of their CO2 emissions. What the commission has proposed now, instead of a 100% reduction from a baseline level, they're now saying that can be a 90% reduction. And that remaining 10% difference they want companies to make up through using low carbon steel or E fuels and biofuels. So essentially it opens up the ability for companies to continue selling a range of different technologies, including plug in hybrid electric vehicles, range extenders, which can allow an electric vehicle to go further than it otherwise would on the charge alone, and internal combustion engines in addition to electric vehicles.

[Sabrina Siddiqui]

That was the Journal's Kim McCrail. Pepsi worked to raise prices of soda and other goods at retailers so it could help protect Walmart's lower prices. That's according to a recently unsealed antitrust lawsuit. The Federal Trade Commission sued Pepsi during the Biden administration, but dropped the suit after Trump took office. It was unsealed last week after a push from an anti monopoly advocacy group. Complaint alleges that Pepsi tracked how much other retailers were charging, offered promotions to Walmart, and in some cases tried to raise prices at other stores. The allegations shed light on a common industry practice where large consumer goods and food companies carefully manage their business with their largest retail customers because of the big sales volumes that are at stake. A Pepsi spokeswoman says the complaint includes, quote, inaccuracies and unsubstantiated allegations and that Pepsi complies with the law. A Walmart spokeswoman said the company is committed to negotiating for value and low prices for customers. And in global news, the White House told Israeli Prime Minister Benjamin Netanyahu that President Trump was frustrated by an Israeli operation that killed a Hamas commander. That's according to U.S. officials and a person familiar with the matter. The people said Trump feared the weekend killing could disrupt a fragile ceasefire in Gaza that the president considers one of his major achievements. The US Wasn't given prior notice of the airstrike. Trump denied he was frustrated with Netanyahu while speaking to reporters yesterday. And an Israeli official says there was no disagreement between the two leaders on Gaza. And that's what's news for this Tuesday afternoon. Today's show was produced by Anthony Bansi with supervising producer Tali Arbel. I'm Sabrina Siddiqui for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.

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