U.S. Record-Downgraded 911,000 New Jobs, Employment Data "Worse Than Imagined"

On September 9 local time, the U.S. Bureau of Labor Statistics significantly revised employment data, downgrading the number of new jobs added in the U.S. over the past 12 months ending in March by 911,000, with the revised data being less than half of the initially published figure (1.79 million).

Later that evening, the White House responded, stating that these data indicate the economy during President Biden's administration is "worse than ever."

The Washington Post and The Wall Street Journal pointed out that this is the largest revision in U.S. recorded history. It also indicates that the U.S. labor market has cooled sharply over the past 12 months, injecting more uncertainty into the economy. At the same time, some experts warned that former President Trump had repeatedly claimed that employment data was "manipulated," and now there is even more reason for him to take "more radical actions."

According to the latest preliminary benchmark revision data released by the U.S. Bureau of Labor Statistics, the nonfarm payroll numbers for the past year ending in March were revised down by 911,000, equivalent to an average monthly reduction of nearly 76,000. This is the largest revision since 2000.

The U.S. Bureau of Labor Statistics report stated that the leisure and hospitality industry, retail, manufacturing, and information sectors were significantly affected.

The Wall Street Journal mentioned that this is only preliminary revised data, and the official revised data will be published in February next year after obtaining complete data from all regions. Some economists believe the situation may not be that severe. However, the report shows that labor market growth began to lose momentum during the later stages of the Biden administration, which could heighten concerns about the job market.

"These revisions have not really changed my view of the labor market; my view has been quite pessimistic," said Guy Berger, director of economic research at the non-profit organization Burning Glass Institute, which studies employment trends. "We know that the labor market has been cooling during this period. Many other indicators have also declined. And throughout this process, the number of new jobs has decreased."

James Knightley, chief international economist at ING, said: "These revisions indicate that the momentum of employment is weaker than initially imagined."

The report mentioned that this comes as the Trump administration is criticizing the accuracy of the Bureau of Labor Statistics' data.

On the 9th, the White House responded, stating that these significant revisions show that the Bureau of Labor Statistics has long struggled to accurately measure economic conditions, and that Trump's previous criticisms and his decision to fire the bureau's director, Erica L. McHenry, were correct. Last month, Trump had already nominated E.J. Antoni, chief economist at the conservative think tank Heritage Foundation, as a successor.

White House Press Secretary Karoline Leavitt stated in a statement: "This is exactly why we need new leadership to represent the Bureau of Labor Statistics, so that American financial markets, businesses, policymakers, and families can regain trust and confidence in the agency."

At the same time, the White House used the data revision to attack the Biden administration. Leavitt said: "It clearly shows that the economy under the Biden administration is much worse than ever before, and that President Trump inherited a weaker economy than we imagined."

The White House statement also said that the weak labor market means Federal Reserve Chair Powell "has no more excuses and must now cut interest rates."

Michael Strain, an economist at the American Enterprise Institute, expressed concern, stating that he believes this news will "unfortunately exacerbate the narrative about problems within the Bureau of Labor Statistics." He said: "We may see the president taking more radical actions."

On August 1, the U.S. Bureau of Labor Statistics released a report stating that the U.S. added 73,000 jobs in July, far below market expectations. At the same time, the report significantly revised the employment data for May and June, reducing May's new jobs from 144,000 to 19,000, and June's from 147,000 to 14,000, totaling a revision of 258,000 jobs for the two months.

Trump was very dissatisfied with the latest employment data, claiming that "employment data is manipulated to make Republicans and me look bad." He also accused Bureau of Labor Statistics Director McHenry of "artificially inflating" employment data before the 2024 U.S. election to "increase the chances of Democratic presidential candidate Harris winning." Immediately after, Trump announced the firing of McHenry.

Original: www.toutiao.com/article/1842851630314560/

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