USA 
United Kingdom
Recent figures from the Bureau of Labor Statistics (BLS) suggest that the US job market may be weaker than initially thought after a discovered miscalculation.
The quarterly census of employment and wages revealed that 818,000 fewer jobs were created in the 12 months to March than first calculated, representing a 0.5% decrease.
While the revision was aligned with economists' predictions, it indicates that hiring has not been as robust as previously reported. Employers have been adding about 174,000 jobs per month, 28% lower than the earlier estimate of 242,000 jobs.
The news comes at a crucial time as the Federal Reserve considers cutting its benchmark interest rate for the first time since March 2020. Chair Jerome Powell has hinted at the possibility of rate cuts, with minutes from the July meeting suggesting that most participants believe easing policy would be appropriate if economic data continues as expected.
It also has political implications as the economy remains a top priority for voters in the upcoming presidential election. Despite creating about 16 million jobs since taking office and maintaining the lowest average unemployment rate of any administration in 50 years, President Biden has received low marks from voters for his handling of the economy. While inflation is subsiding, voters remain concerned about prices.
Republicans were quick to highlight the revision, with the RNC Research team noting on social media that it represents "the largest downward revision to employment in 15 years." Indeed, the 0.5% revision is the most significant since 2009.
The largest downward adjustments were seen in professional and business services (358,000 fewer jobs), leisure and hospitality (150,000 fewer), manufacturing (115,000 fewer), and trade, transportation and utilities (104,000 fewer).
“It is important for markets to remember that these are not job losses, it is just that the job count was never that high,” said Chris Rupkey, chief economist at FwdBonds. “The economy apparently did not need those phantom ‘lost’ workers, because robust real consumer expenditures powered very strong [economic] growth in the second half of last year.”
The recent spate of US job losses, particularly in the tech sector, which has seen over 400 companies make more than 130,000 people redundant just this year, has lead to workers feeling less secure about their career prospects, expressing growing concerns about job security and compensation. A July 2024 SCE Labor Market Survey highlights a significant increase in job-seeking activity, with 28.4% of respondents actively searching for new employment in the past four weeks, the highest level for ten years.
