BLS Reveals Job Growth in the US is Weaker Than Initially Reported

Wednesday, 21 August 2024, 14:00

BLS data shows that US job growth has been significantly weaker than initially reported, with 818,000 fewer jobs than estimated. This indicates a cooling labor market, suggesting a need for careful evaluation by the Federal Reserve. The revisions highlight that strong consumer spending has powered economic growth despite the job count revisions.
Cnn
BLS Reveals Job Growth in the US is Weaker Than Initially Reported

BLS Major Revision in US Job Growth

BLS data reveals that US job growth has been much weaker than initially reported, with a startling 818,000 fewer jobs counted in March than previously estimated. The Bureau of Labor Statistics conducted its annual benchmark review of employment data, indicating that the revisions are the largest since 2009.

Understanding the Data Revision

  • The preliminary adjustment shows that job growth wasn't as robust as thought.
  • Private sector jobs saw significant downward adjustments, particularly in professional services (down 358,000).
  • Other hard-hit sectors include information (down 68,000), leisure (down 150,000), and manufacturing (down 115,000).

Chris Rupkey, a chief economist, noted that while the job count was lower, the economy demonstrated strength due to strong consumer expenditures. These revisions are a crucial indicator of the US labor market’s health and will influence the Federal Reserve's considerations on interest rates.

Future Outlook

These projections are preliminary and won’t be finalized until February 2025. The downward adjustments reveal serious implications for market perceptions and economic strategies going forward.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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