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Revised job gains released by the Bureau of Labor Statistics (BLS) reveals that the U.S. economy added 30% fewer jobs than what was initially reported from April 2023 through March 2024.
The revision, which reduces job gains by 818,000, is the largest such BLS correction since the financial recession of 2009.
CNBC reports that although job creation stood at more than 2 million after the figures were revised, it could still be seen as a clear indication that the labor market is not as strong as previous reporting made it out to be.
Several economic uncertainties and competitive labor markets have also led American workers to have the lowest career confidence since LinkedIn launched its survey on workers’ confidence four years ago.
The decrease in job gains comes from revisions in several sectors including professional and business services, leisure and hospitality, manufacturing, trade, transportation, and utilities. For instance, the professional and business services sector alone shows a decrease of 358,000 jobs.
The revised figures suggest that monthly job gains averaged 174,000 during this period, according to CNBC’s analysis. This is down from the previously estimated 242,000. Although the labor market still shows some resilience, the dramatic revision has economists and policymakers reassessing its true strength based on these new figures.
Negative trends related to the overall health and stability of the labor market also influence how U.S. workers perceive their compensation and job prospects. The July 2024 Survey of Consumer Expectations (SCE) Labor Market Survey revealed satisfaction with wage compensation, nonwage benefits, and promotion opportunities at respondents’ jobs all decreased year-over-year.
Many investors believe that the current state of the labor market will be a considerable factor that will influence the Federal Reserve’s anticipated decision to announce rate cuts in September. The BLS revisions and the Fed’s delays of a rate cut highlight the ongoing challenges in how economists accurately measure the health of the labor market and the broader implications on the workforce and the future of work.
