Unveiling the True State of the US Jobs Market: A Record 911K Revision
The US labor market was significantly weaker than initially reported, with the Bureau of Labor Statistics announcing a massive downward revision of 911,000 jobs for the 12-month period ending in March 2025. This represents the largest revision on record, exceeding economists’ expectations of around 800,000.
The revision reduces average monthly job gains from 147,000 to a mere 71,000 during this period. This time span covered the final months of Biden’s presidency and the first two months of Trump’s administration, revealing that employment growth was far more sluggish than previously understood.
Key sectors showing the largest downgrades included:
- Leisure and Hospitality (-176,000)
- Professional and Business Services (-158,000)
- Retail Trade (-126,200)
The revision comes after President Trump fired the BLS Commissioner last month over concerns about data accuracy.
Economists believe this strengthens the case for Federal Reserve interest rate cuts, with market probability for a 0.25 percentage point cut at the September 17 meeting now at 94%.
Source: CNBC