US annual job growth through March revised downwards

US job growth was significantly weaker than previously reported for the year through March, the US government estimated yesterday, ahead of the central bank's monetary policy meeting next week.

The bad news on jobs led the White House to renew its calls for an interest rate cut, along with its criticism of the Department of Labor data.

US job growth is likely to be revised downward by a record 911,000 jobs for the 12 months ending in March, according to preliminary data from the Department of Labor.

Prior to this estimate, government data indicated that employers had added nearly 1.8 million jobs during that period, which spans the final months of former President Joe Biden's administration and the start of Donald Trump's second term.

These reviews are part of an annual government exercise, and the final tally will be published early next year.

However, White House press secretary Karoline Leavitt cited this “largest downward revision ever recorded” to call Biden’s economy a “disaster.”

He pressured Federal Reserve Chairman Jerome Powell to cut interest rates immediately, declaring at a press conference that the independent central bank needs “new leadership.”

Leavitt also criticized the Department of Labor's Bureau of Labor Statistics for its payroll data and reviews, saying this reinforced the need for a new director at that agency as well.

Following the release of a weak jobs report in early August, the President fired Labor Statistics Commissioner Erika McEntarfer and has since appointed a conservative economist to replace her.

Asked when the numbers might improve under Trump, Leavitt responded that officials first “need truthful, honest data.”

Frozen labor market

The preliminary revision is larger than last year's downward adjustment of 818,000 jobs, which sparked outrage from Trump ahead of the November presidential election.

At the time, Trump accused the Biden administration of manipulating employment figures, calling it a “massive scandal.”

The figure of 818,000 was eventually revised downward to a decrease of 598,000 jobs, and yesterday's figure could also be significantly revised.