Economy

published : 2023-08-24

Revised Data Exposes Slower US Job Growth: 306,000 Fewer Jobs Generated Over Past Year

Newly revised data reveals slower U.S. job growth than previously thought, with 306,000 fewer jobs created from April 2022 to March 2023

A laborer on a construction site, holding a hard hat and looking at blueprints, highlighting the struggle of the labor market in COVID times. Taken with a Canon EOS 5D Mark IV.

New findings suggest an underwhelming performance of the U.S. labor market over the last year, with job growth appearing to be weaker than what was initially projected.

Figures released on Wednesday by the Bureau of Labor Statistics have revised the total tally of March job creation data downward by 306,000, positing that the U.S. economy may have experienced a slower payroll growth from April 2022 to March 2023.

On average, a total of 311,500 new jobs were added per month across this period, falling short of the former estimate of 337,000, resulting in approximately 25,000 fewer jobs generated in a month.

The benchmark revision data majorly stem from state unemployment tax records that employers are mandatorily required to file, with separate government reports due next February expected to finalize these numbers.

A close-up shot of a Bureau of Labor Statistics report, with highlighted keywords and charts related to job growth. Taken with a Nikon D850.

The majority of these downward revisions are seen across multiple industries.

Sectors such as transportation and warehousing took the biggest hits, with payrolls lowered by 146,000. Similar downward adjustments were seen in professional and business services (116,000), private education and health services (85,000) and, not surprisingly, in leisure and hospitality, amounting to 46,000, a sector that was particularly battered by the COVID-19 pandemic.

However, some sectors did manage to witness robust job growth, with wholesale trade seeing an upward revision of 48,000, retail payrolls being bumped up by 38,000 and a commendable addition of 30,000 in the construction sector.

Notwithstanding the downward revisions, the added job numbers steadily increased through March of the past year.

An evening shot of The Federal Reserve Bank building, symbolizing the role of this institution in regulating the economy. Taken with a Sony A7R IV.

The implications of the revised data are being closely monitored by the Federal Reserve as an indication that the labor market might be easing after continuous months of surprisingly robust job gains, simultaneously allowing policymakers to take necessary steps toward reigning in inflation.

The current consumer price index, although lower from its peak of 9.1% in June 2022, still sits considerably higher than the pre-pandemic average, hovering around double the rate despite the execution of 11 interest-rate hikes.

This recent revelation upon the state of the job market might not paint a rosy picture as initially perceived but might prove beneficial for the U.S central bank in its ongoing struggle against inflation.