The US economy added 911,000 fewer jobs than initial estimates had suggested in the year through March, according to preliminary data from the Labor Department released on Tuesday. The routine annual report - a revision to payrolls data - showed that the jobs market had been growing at a slower pace than previously thought at the end of the Biden administration and in the first months of the Trump administration.
Economists had anticipated a large downward revision, but the weaker-then-expected figure bolstered concerns about the health of the world's largest economy. The Federal Reserve is closely watching for signs of softness in the jobs market ahead of its meeting next week. The US central bank is expected to lower its benchmark interest rate after holding rates steady so far this year, as it weighs signs of a slowdown in the jobs market against fears that US President Donald Trump's tariffs might reignite inflation.
Last week, the Labor Department reported that employers added just 22,000 jobs in August, fewer than expected, while the unemployment rate ticked up from 4.2% to 4.3%. Tuesday's data added to this picture of a slowing jobs market, reinforcing expectations that the US central bank will cut interest rates next week. The US central bank is expected to lower its benchmark interest rate after holding rates steady so far this year, as it weighs signs of a slowdown in the jobs market against fears that US President Donald Trump's tariffs might reignite inflation. (Ed note: The data gathered is from March 2024 to March 2025. One can't blame the Field Economist that gathered the data, you can lay it at the door of the Biden Administration. However, President Trump will be blamed for the unemployment figures. If Trump is not allowed to complete his economic plans, including the tariffs, look for big problems.) ( Read More)