According to the preliminary estimates of the annual benchmark revision to U.S. employment figures, U.S. job growth wasn’t as strong as initially estimated. Between March 2023 and March 2024, 818,000 fewer jobs were added to the U.S. economy than originally reported, resulting in a 0.5% growth in employment. This is the largest downward adjustment since 2009.
The revised data indicates that the U.S. added 2.08 million jobs during the 12-month period ending in March 2024, down from the initial estimate of 2.90 million. Average monthly job growth was adjusted from 242,000 to 174,000. Although this is still solid growth, it is below earlier expectations.
The sectors experiencing the most significant declines, accounting for more than 90% of the downward revision, include: professional and business services (-202,000 jobs), retail trade (-47,000 jobs), manufacturing (-96,000 jobs), and information (-103,000 jobs). The Leisure and Hospitality industry also saw a decline, but Private Education and Health Services experienced a growth of 1,144,000 jobs, up from 1,057,000 in the original estimate.
The downward revision of U.S. job growth points to a slower economic recovery. Key sectors facing declines suggest potential challenges for overall economic momentum and consumer confidence.
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