US Job Growth Revised Down by 818,000

Revised data from the U.S. Bureau of Labor Statistics indicates that job growth was significantly weaker than initially reported, with 818,000 fewer jobs added between April 2023 and March 2024. The average monthly job growth was adjusted down to 174,000, a decrease from the previous estimate of 242,000, marking the largest downward revision since 2009. Economists are concerned that these revisions reflect a cooling labor market, as indicated by rising unemployment rates, which reached 4.3% in July. The Federal Reserve is expected to respond to these findings by considering interest rate cuts at its upcoming meeting in September, with a majority of investors anticipating a 25-basis point reduction. Key sectors affected include professional and business services, which saw a reduction of 358,000 jobs, while some areas like transportation and warehousing reported slight gains. The final employment figures will be released in February 2025, but early indications suggest a need for a more cautious approach to economic growth assessments.