Job growth revised down by nearly 1 million jobs through March, new data shows

"The U.S. job market was much weaker in 2024 and early this year than originally reported, adding to concerns about the health of the nation's economy. Employers added 911,000 fewer jobs than originally reported in the year that ended in March 2025, the Labor Department reported Tuesday. The department issues the so-called benchmark revisions every year. They are intended to better account for new businesses and ones that had gone out of business."

"The revision showed that leisure and hospitality firms - including hotels and restaurants - added 176,000 fewer jobs than originally reported, professional and business services companies 158,000 fewer and retailers 126,000 fewer. The report comes after the department reported Friday that the economy generated just 22,000 jobs in August, adding to fears that President Donald Trump's erratic economic policies, including massive and unpredictable taxes on imports, have created so much uncertainty that businesses are reluctant to hire."

"Sal Guatieri, senior economist at BMO Capital Markets said the revisions painted "a much weaker portrait of the job market than initially thought. While the revision doesn't say much about what has happened since March, it suggests the labor market had less momentum heading into the trade war. And, recent data suggest the market has downshifted further." Since March, monthly job creation has decelerated to an average 53,000."

Annual Labor Department benchmark revisions showed U.S. employers added 911,000 fewer jobs in the year ending March 2025 than originally reported. The revisions are preliminary, meant to better account for new and closed businesses, with final revisions due February 2026. Leisure and hospitality added 176,000 fewer jobs, professional and business services 158,000 fewer, and retailers 126,000 fewer. August payrolls rose by just 22,000, and monthly job creation has averaged 53,000 since March. Economists say the revisions indicate weaker labor-market momentum entering the trade war and could increase pressure on the Federal Reserve to cut interest rates.

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