US Job Growth Revised Down by 818,000 in March 2023-March 2024

US Job Growth Was Less Than Expected – 818,000 Fewer Jobs Added Than Originally Reported

The U.S. economy added 818,000 fewer jobs between March 2023 and March 2024 than originally reported, according to new data from the Bureau of Labor Statistics (BLS). This correction, known as the annual benchmark revision, is based on a more accurate comparison of job numbers with data from state unemployment insurance records.

This kind of adjustment usually makes only a small difference, but this time, it was more significant, with total job growth revised down by 0.5%. It’s the biggest downward correction in job numbers since 2009.

However, this doesn’t mean that jobs were lost or that people are unemployed. It simply means that fewer jobs were added than first thought. Even after this revision, the U.S. still added 2.08 million jobs in the 12 months leading up to March 2024. While this is less than the 2.90 million jobs first reported, it still shows that job growth was strong.

On average, 174,000 jobs were added each month during this period, down from the previous estimate of 242,000. This lower number still points to a healthy job market, just not as booming as initially believed.

The revision mostly affected four industries: professional and business services, leisure and hospitality, retail trade, and manufacturing. These sectors were responsible for over 90% of the adjustment. Despite the changes, the leisure and hospitality industry still saw significant growth, adding nearly 300,000 jobs during the year. The other three sectors, however, experienced slight declines.

This updated report offers a clearer picture of the U.S. labor market, showing that while job growth was slower than first thought, the economy was still growing steadily. This new information could help policymakers better understand the current state of the labor market and guide decisions about the economy’s future.