US job growth revised downward

The revised numbers may pressure the Federal Reserve to cut interest rates soon

(Image credit: Michael M. Santiago / Getty Images)

published 22 August 2024

What happened

The U.S. economy added 818,000 fewer jobs than originally reported in the 12 months ending in March, the Bureau of Labor Statistics said. The preliminary downward adjustment — to 174,000 new jobs a month from 242,000 — was part of the Labor Department's annual revision process, using more accurate state unemployment data.

The weaker job growth numbers give fresh "ammunition to critics who suggest the Federal Reserve may be late to cutting interest rates," focusing too much on "curbing inflation, to the detriment of the labor market," The Washington Post said. Even with the new numbers, The New York Times said, "the big picture remains relatively unchanged: Job growth is slowing, but not collapsing. The unemployment rate is rising, but layoffs remain low."

"This doesn’t challenge the idea we're still in an expansion," but it signals more muted monthly job growth and puts "extra pressure on the Fed to cut rates" in September, Robert Frick, an economist at the Navy Federal Credit Union, said to The Associated Press.

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Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.