The Bureau of Labor Statistics has revised its estimate of US job growth downward by 911,000 for the year ending in March, according to a preliminary report released Tuesday.
The adjustment, which reflects inputs from more comprehensive payroll data, suggests that employment gains over the past year were significantly weaker than initially reported – a development that could have implications for both economic policy and the broader outlook for the labor market.
The BLS' annual revision, which is based on data from the Quarterly Census of Employment and Wages, marks one of the largest downward adjustments in recent years.
As a share of the labor force, the change amounts to 0.6%, well above the decade-long average of 0.2%, according to the BLS.
The new figures indicate that employers added nearly 76,000 fewer jobs per month than previously believed from April 2024 through March 2025. In some months, such as August and October 2024, job growth may have actually turned negative .
The largest markdowns were seen in leisure and hospitality, professional and business services, and retail trade. Most sectors experienced downward revisions, though transportation, warehousing, and utilities saw small gains. Nearly all of the changes were confined to the private sector, with government jobs adjusted down by 31,000 .
While the revisions are backward-looking, capturing just a few months of President Donald Trump's second turn at the White House, they are sure to stoke additional debate over the health of the US economy and the reliability of labor market data.
The BLS’s benchmark revision process allows it to get a better read on economic reality with more comprehensive data, but the size of this year’s adjustment has drawn attention.
“The benchmark revision process provides the BLS with the opportunity to incorporate more timely and accurate data,” wrote Fred Ashton, director of competition policy at the American Action Forum .
Economists have offered a wide range of estimates for the revision, with projections from major banks ranging from 600,000 to as many as one million fewer jobs. The breadth of the adjustment reflects both the limitations of survey-based data and the challenges of capturing rapid shifts in the labor market.
According to the BLS, much of the overestimation can be traced to response and nonresponse errors in its surveys, as well as differences between survey data and more comprehensive payroll records.
The revisions also come at a politically sensitive time. Following a weak July jobs report and substantial downward revisions, Trump ordered the immediate firing of former BLS Commissioner Erika McEntarfer.
The latest data Tuesday cover the final months of the Biden administration and the start of Trump’s second term, but does not account for recent policy changes or the effects of new tariffs.
Despite the backward-looking nature of the revisions, the data may influence monetary policy. A sharp downward adjustment could add to calls for the Federal Reserve to cut interest rates, especially as recent months have shown payroll growth below the level needed to keep the unemployment rate steady. However, some economists argue that only a much larger revision would prompt a significant policy response.
"The jobs picture keeps deteriorating and while that should make it easier for the Fed to cut rates this fall, it could also throw some cold water on the recent rally," noted Chris Zaccarelli, chief investment officer for Northlight Asset Management in Charlotte, North Carolina. "Worse still, if the CPI shows a worsening trend of higher inflation on Thursday then the market will begin worrying about stagflation."
Looking ahead, the BLS will issue a final benchmark revision in February 2026, which could further adjust the numbers. For now, the latest figures serve as a reminder of the challenges in measuring the labor market – and the importance of relying on multiple data sources to get a clearer picture of economic trends.
Goldman's asset management arm is deepening its options-ETF bet, adding NEOS's $30 billion income lineup a year after buying Innovator's buffer ETFs.
IFP adds roughly $400M in combined assets as advisors from South Dakota and Maryland seek flexible, long-term partnerships following LPL's Commonwealth acquisition.
A score is generated to show coverage needs across life insurance, long-term care coverage, retirement income protection, and annuities.
Christian Mango is joining the PE-backed RIA giant to grow retirement plan services as it deepens its workplace-to-wealth strategy
The startups paying millions in consulting fees were secretly controlled by one insider, the SEC alleges.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
