American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

U.S. added 818,000 fewer jobs than thought, adding to concerns about a slowing economy

by admin August 23, 2024
August 23, 2024
U.S. added 818,000 fewer jobs than thought, adding to concerns about a slowing economy

U.S. job gains over the 12 months ending in March were revised downward Wednesday by 818,000 — a significant revision that adds to recent concerns that the economy has been slowing.

The change means that roughly 2.1 million jobs were created in the U.S. in the past year, compared with about 2.9 million prior to the revision. The new figures do not represent job losses — merely new estimates of how many jobs were actually created during the period in question.

‘Even after these large downward revisions, the labor market looks to have been on solid footing,’ Bank of America research analysts said after the report’s release.

The data serves as additional evidence that a more significant downturn in the U.S. economy may be afoot. While the economy has grown steadily in recent quarters, often outpacing expectations, the unemployment rate recently climbed to a new post-pandemic high of 4.3% (the data revisions today do not affect measures of the unemployment rate). The share of American workers both employed and unemployed looking for new work rose to its highest level in a decade in July — even as hiring has largely ground to a halt.

In a statement, White House Chief Economic Adviser Jared Bernstein said the preliminary estimate ‘doesn’t change the fact that the jobs recovery has been and remains historically strong, delivering solid job and wage gains, strong consumer spending, and record small business creation.”

Wednesday’s update from the Bureau of Labor Statistics was the largest negative revision since 2009. Still, it was slightly less than feared by forecasters, some of whom had warned it could have been as high as 1 million. Market reaction was largely muted.

In a note to clients following Wednesday’s release, Olivia Cross, economist with Capital Economics research group, said the report means that the jobs data covered by the period were ‘softer than first thought, but not worryingly so,’ and that it will likely lead the Federal Reserve to cut its key interest rate by 0.25% in September, as most analysts expected before Wednesday’s release.

On an absolute basis, employment in professional and business services saw the largest adjustment, down 358,000 jobs compared to what was previously reported. Leisure and hospitality was next, down 150,000.

On a percentage basis, information occupations saw the biggest adjustment, a decline of 2.3%.

Each year, the Bureau of Labor Statistics uses state unemployment insurance tax records to paint a more accurate picture of the jobs market compared with its regular monthly surveys.

The BLS revisions are preliminary, and the scale of the revisions will again be adjusted next February.

This year’s revision was highly anticipated as market observers debate whether the Federal Reserve has been too slow to cut rates amid signs of a slowing economy. The Fed is expected to cut interest rates by 0.25% at its next policy-setting meeting on Sept. 18.

Bank of America’s research analysts said the report will have ‘little impact’ on expectations for Fed policy, adding that the Fed already had concerns about the labor market before the revisions.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
European Union slashes planned tariffs on China-made Tesla EVs, other Chinese firms
next post
Walz’s family relied on Social Security when his father died. Many don’t know kids are eligible for benefits.

Related Posts

France’s €109 billion AI investment: Can it compete...

February 10, 2025

Litecoin price jumps 30% as SEC invites public...

January 30, 2025

Boeing is in talks to reacquire fuselage maker...

March 5, 2024

Yelp stock is cheap: is it a classic...

September 23, 2024

Baidu stock is extremely cheap, but one key...

September 30, 2024

Volvo’s Q3 earnings fall short: stagnant demand raises...

October 18, 2024

What is the outlook of the iShares Russell...

February 3, 2025

Dow, S&P 500 slip as investors assess hot...

December 13, 2024

Hedge funds exit Asian markets ahead of US...

April 2, 2025

Europe markets open: stocks dip ahead of key...

June 9, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Why Thailand’s economic recovery may not be straightforward

      July 6, 2025
    • Why the US job market may actually crumble soon

      July 6, 2025
    • China spares major French cognac makers from tariffs in brandy dispute

      July 6, 2025
    • Berlin seeks Patriot Missiles for Ukraine amid US supply strain: report

      July 6, 2025
    • Donald Trump to send warning letters as 70% tariff threat looms

      July 6, 2025

    Categories

    • Business (3,304)
    • Investing (2,581)
    • Latest News (2,011)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved