The Bureau of Labor Statistics reported Tuesday that 911,000 fewer nonfarm jobs were added in the year through March than previously reported.
BLS said job estimates are benchmarked each year “to comprehensive counts of employment” based on state unemployment insurance tax records.
This year’s estimate was larger than last year’s preliminary estimate of 818,000 fewer jobs created, although that was later adjusted in final benchmark revisions to a smaller drop of 598,000.
The revision adds to the stark picture of a cooling labor market, where other data points have indicated it’s much harder to find a job. Power has shifted back to employers, and partly due to economic uncertainty, businesses aren’t hiring or posting new opportunities as much.
As of July, there are more people unemployed and actively looking for work than job opportunities. Last week, the BLS’s August employment situation report showed way fewer jobs added than expected. June’s growth was also revised to a loss, the first net drop since the end of 2020.
Most major industry sectors saw downward revisions. Retail trade added 126,000 fewer jobs than originally reported. The leisure and hospitality sector, which has been one of the main drivers of job growth over the last couple years, was revised down by 176,000. The predominantly white-collar professional and business services sector posted 158,000 fewer payrolls.
President Donald Trump fired BLS commissioner Erika McEntarfer after July’s jobs report had larger-than-usual revisions for May and June. He cited last year’s large benchmark revisions while criticizing the BLS’s methods in the August Truth Social post where he told his team to fire McEntarfer.
“This is the same Bureau of Labor Statistics that overstated the Jobs Growth in March 2024 by approximately 818,000 and, then again, right before the 2024 Presidential Election, in August and September, by 112,000,” the Truth Social post said. “These were Records — No one can be that wrong? We need accurate Jobs Numbers.”
Job market analysts criticized the termination.
“Even if nothing in BLS processes actually changes, public trust is permanently harmed when the BLS commissioner is fired after one bad jobs report,” Skanda Amarnath, the executive director of Employ America, wrote on X.
The benchmark revision is a preliminary estimate; the final one will be out in February as part of the January jobs report.
This is a developing story. Please check back for updates.
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