U.S. job growth was significantly weaker than initially reported, with the Bureau of Labor Statistics (BLS) indicating a preliminary downward revision of 911,000 payrolls for the 12 months through March 2025. The adjustment underscores a more moderate labor market slowdown and raises expectations of Federal Reserve interest rate cuts later this month.
- The payroll revision reduces average monthly job growth by about 76,000 positions.
- Initial data had shown 1.8 million jobs added in the year through March, or 149,000 per month.
- Revised data suggest a slower pace of employment growth that may reinforce the Fed’s case for cutting rates.
- Fed Chair Jerome Powell has acknowledged rising risks to the job market; two policymakers pushed for rate cuts in July.
- Traders now expect the central bank to lower rates at its Sept. 17 meeting.
- Benchmark revisions are conducted annually but have gained added scrutiny amid concerns over the pace of labor market softening.
- President Donald Trump has previously criticized revisions to federal jobs data.
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Editor’s Note: This is a developing story. This article may be updated as more details become available.
