The U.S. economy added 818,000 fewer jobs between March 2023 and March 2024 than initially reported, according to a recent revision by the Bureau of Labor Statistics (BLS), marking a larger adjustment than usual.
The annual revision by the BLS showed that employment growth for 2023 was 0.5 percent lower than originally estimated. Typically, these revisions only adjust employment figures by about 0.1 percent, making this year’s correction particularly significant.
Experts had anticipated a notable revision. Economists at Goldman Sachs predicted a possible decline of up to 1 million jobs, while other financial institutions like Wells Fargo and JPMorgan Chase forecasted reductions of at least 600,000 and around 360,000 jobs, respectively.
These adjustments may heighten concerns that the Federal Reserve is lagging in lowering interest rates, which were increased from near zero in March 2022 to a range of 5.25 to 5.5 percent by July 2023. Interest rates have stayed at a 23-year high for over a year as the Fed continues its efforts to bring inflation down to its 2 percent target.
Inflation fell below 3 percent in July for the first time since the pandemic began, and there is speculation that the Fed might cut rates at its September meeting.
This substantial downward revision comes as Vice President Kamala Harris seeks to solidify a strong economic message following President Biden’s challenges with addressing criticism over his economic policies and handling of inflation, which reached a pandemic-era peak of 9 percent in June 2022.
Although the Federal Reserve operates independently and does not take direction from the president or any elected officials regarding interest rates, inflation and the rising cost of living have become key points of attack from former President Trump and other Republicans as the November election approaches.
While Harris currently leads Trump by 3 points in recent polls, according to an analysis by The Hill and DecisionDeskHQ, Trump still holds an advantage in public trust regarding economic management. A new poll from ABC News/Washington Post/Ipsos found that Trump leads by 9 points in public trust to handle the economy and inflation, issues that are a priority for many Americans.
This article originally appeared on The Hill
