Historic Downward Revision in US Jobs Market: A Decrease of 911K Jobs
The U.S. labor market has seen a significant downward revision, creating far fewer jobs than initially reported. This shocking revelation comes from a Bureau of Labor Statistics revision that removed a staggering 911,000 jobs from initial estimates. This marks the largest downward revision on record since 2002. The benchmark adjustment covers the year prior to March 2025 and further emphasizes the mounting evidence of economic weakness.
The magnitude of this revision, which was 50% higher than last year’s adjustment, carries significant political and economic implications. Recent employment data paints a bleak picture, showing that the economy added a mere 22,000 jobs in August. This has led to the unemployment rate rising to 4.3%—the highest level since 2021. In a surprising turn of events, for the first time since December 2020, the U.S. actually experienced a loss of jobs in June, shedding 13,000 positions.
These revelations have significantly increased pressure on the Federal Reserve to cut interest rates. Currently, markets are pricing in an 87.8% probability of a quarter-point rate cut at the upcoming September meeting. The Trump administration has utilized this data to criticize previous economic policies and justify calls for immediate monetary policy changes to bolster the weakening economy.
Source: CNBC