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.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Explore More

To continue reading this article...

Create a free account

Continue reading this article and get limited website access each month.

Get unlimited website access, exclusive newsletters plus much more.

Cancel or pause at any time.

Already a subscriber to The Week?

Unlimited website access is included with Digital and Print + Digital subscriptions.
with the same email registered to your subscription to unlock access.

Not sure which email you used for your subscription? Contact us

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.