VOLUME 206: WEEK ENDING AUGUST 24, 2024
The U.S. added 818,000 fewer jobs between the spring of 2023 and the spring of 2024 than originally reported, representing a 0.5% reduction from the initial figures. This is the largest downward revision since 2009, significantly exceeding the average negative adjustment of 243,000. This sharp decline could indicate a worsening labor market, potentially prompting the Federal Reserve to consider more aggressive interest rate cuts.
“The Fed will see the revisions as another reason to pull forward plans to reduce interest rates,” said chief economist Bill Adams of Comerica Bank in Dallas.
The government’s revised estimate of employment growth showed the economy gained about 2.1 million jobs from April 2023 to March 2024. Originally, the increase in employment during that span was recorded at 2.9 million.
Source: MarketWatch
