US Job Growth Cut by 911,000 After Revisions, Pointing to Softer Economic Momentum
It appears that the U.S. labour market turned into a more sluggish market than was previously thought in an Labour Department update released on Tuesday.
Labor market report has brought up fresh questions about the state of the economy as well as the accuracy of employment data collection.
The annual revisions to nonfarm payrolls that span from March 2025 until March 2025, indicated that the US economy slowdown than originally predicted, based on preliminary data of the Bureau of Labor Statistics (BLS). The magnitude of the revision downward was close to the top of Wall Street's expectations and had anticipated adjustments that ranged from 600,000 and a million.
The revisions this year were over 50% more than the revisions previously reported and were the most significant increase since 2002. In a monthly perspective the latest figures suggest an average of 911000 jobs lost than what was initially reported.
Interestingly, a lot of the data dates back to prior to the time of President Donald Trump taking office, which suggests a slowdown was in place before his administration implemented taxes on U.S. trade partners.
"The BLS' preliminary benchmark revisions to nonfarm payrolls show a much weaker labour market through most of 2024 and early 2025 than earlier estimates suggested," said Oren Klachkin Market economics at Nationwide Financial. "With the pace of US job growth revised slowed and income growth slowing, the economy was in a weak spot prior to the recent spike in uncertainty over policy and the slowing of the economy.
While these unemployment concerns reflect earlier information, they also reflect more recent indicators of labour market decline. In the months of June through August the payroll growth was just 29,000 jobs per month, far below the amount needed to keep an average unemployment rate.
Sector-wise the most significant changes in the direction of decline were seen in hospitality and leisure (-176,000) as well as professional as well as business and corporate services (-158,000) and the retail sector (-126,200). The majority of major industries in the private sector was affected, with just tiny improvements for transportation and warehousing and utilities. The number of government jobs was cut by around 31,000.
