The U.S. economy created 911,000 fewer jobs than initially estimated in the year through March, according to preliminary Labor Department data released Tuesday. The annual payroll revision showed that job growth had been slower than previously thought during the final months of the Biden administration and the early months of the Trump administration.
Economists had expected a downward adjustment, but the scale of the revision has heightened concerns about the health of the world’s largest economy. The Federal Reserve is closely monitoring the labor market ahead of its upcoming meeting, where it is widely expected to cut interest rates amid signs of a slowdown, while weighing potential inflation risks from President Trump’s tariffs.
Last week, the Labor Department reported that employers added only 22,000 jobs in August, with the unemployment rate rising slightly to 4.3%. The latest revisions add to evidence of a weakening jobs market, reinforcing expectations of a Fed rate cut. The revisions come amid political tensions, following President Trump’s recent firing of the Bureau of Labor Statistics head, Erika McEntarfer, over alleged data manipulation claims made without evidence.
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