The U.S. economy has created nearly 1 million fewer jobs than previously reported in the past year, according to the Bureau of Labor Statistics (BLS), highlighting the weakening job market in the world’s largest economy.
In its preliminary benchmark revision, BLS slashed payroll figures by around 911,000 for the year through March, representing the largest downward adjustment in the agency’s history if confirmed in the final revision set for February 2026.
Prior to the release, economists had already braced for sizable downward adjustments to employment figures, anticipating corrections anywhere from 400,000 to 1 million jobs. The latest figures show employment over the 12 months leading up to March 2024 was revised down by 598,000 jobs—raising concerns about the strength of the U.S. jobs market, as more recent data have shown job gains sputtering.
The labor market has hit another milestone not seen since the depths of the COVID-19 pandemic: unemployed Americans now outnumber available job openings. Government data from July reported 7.18 million job vacancies, compared to 7.24 million unemployed, underscoring a cooling labor market.
The White House quickly responded to the BLS data, with Press Secretary Karoline Leavitt stating that the revision validated former President Trump’s criticism of economic conditions under President Biden. Leavitt argued, “Biden’s economy was a disaster and the Bureau of Labor Statistics is broken.”
Despite the weaker-than-expected jobs picture, most economists see little immediate impact on Federal Reserve policy. Traders are betting the Fed will resume cutting interest rates at its next meeting, having paused in January due to trade uncertainties. CME’s FedWatch Tool indicates markets have priced in a 0.25 percentage point rate cut at each of the Federal Reserve’s three remaining meetings this year.
