The U.S. economy created 911,000 fewer jobs in the 12 months through March than previously estimated, the government said on Tuesday, suggesting that job growth was already slowing before President Donald Trump’s aggressive tariffs on imports.
According to Reuters, the preliminary revision from the Bureau of Labour Statistics also pointed to weaker employment momentum across key sectors, including leisure, hospitality, trade, transportation, utilities, and professional services.
The estimated revision implied that nonfarm payroll gains averaged about 71,000 per month, instead of the 147,000 previously reported. Economists said the labour market has been pressured by trade policy uncertainty, the White House’s immigration crackdown, and a shift by businesses toward automation and artificial intelligence tools.
Leisure and hospitality employment was estimated to be revised down by 176,000 jobs over the 12-month period, trade, transportation, and utilities by 226,000 positions, and professional and business services by 158,000 jobs. Manufacturing employment could be lowered by 95,000, while government employment was cut by 31,000 positions.
Economists continue to expect the Federal Reserve to resume cutting interest rates next Wednesday, with a quarter-point reduction, following a pause earlier this year amid uncertainty over tariffs.
“This means labour market momentum is being lost from an even weaker position than originally thought,” said James Knightley, chief international economist at ING.
The BLS uses the Current Employment Statistics programme and Quarterly Census of Employment and Wages data to benchmark monthly payroll figures. Experts have noted that the bureau’s “birth-and-death” model, which estimates job gains or losses from newly opened or closed businesses, tends to overstate payroll growth.
Reuters added that political and administrative changes have further complicated employment reporting. Sharp downgrades to May and June job figures angered former President Trump, who subsequently fired the BLS Commissioner and nominated a controversial replacement.
