U.S. Economy Added 911,000 Fewer Jobs Than First Reported, BLS Revises

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  Newsroom

• September 09, 2025

• Newsroom

U.S. Economy Added 911,000 Fewer Jobs Than First Reported, BLS Revises

The Bureau of Labor Statistics (BLS) announced Tuesday that the U.S. economy added 911,000 fewer jobs over the 12 months ending in March than initially reported, marking the largest annual revision on record. The adjustment amounts to a 0.6% reduction in employment, a figure economists had projected would fall between 500,000 and 1 million.

The revision stems from the Quarterly Census of Employment and Wages (QCEW), which provides more accurate data than the BLS’s monthly surveys of households and businesses. While monthly jobs reports are later revised as more responses come in, the QCEW captures broader wage and employment trends, often resulting in significant corrections.

Signs of a Slowing Labor Market

Economists noted the revised figures largely reflect sluggish job growth during 2024, before President Trump took office in January 2025.

“These preliminary estimates are consistent with other signs of slowing job growth in late 2024 and the beginning of 2025,” wrote Elise Gould and Ben Zipperer of the Economic Policy Institute.

In August 2025, the labor market added just 29,000 jobs, one of the weakest monthly gains in years. The combination of that disappointing number with Tuesday’s massive revision suggests a labor market “under serious pressure,” according to Pantheon Macroeconomics’ Samuel Tombs.

Political Fallout

Despite the revision reflecting pre-Trump data, the announcement has already fueled political battles. President Trump previously fired the BLS commissioner after claiming — without evidence — that jobs numbers were being manipulated for partisan purposes.

White House press secretary Karoline Leavitt seized on the data to defend Trump’s overhaul of the agency:

“Today, the BLS released the largest downward revision on record proving that President Trump was right: Biden’s economy was a disaster and the BLS is broken. This is exactly why we need new leadership to restore trust and confidence in the BLS’s data.”

Leavitt also took aim at the Federal Reserve:

“Much like the BLS has failed the American people, so has Jerome ‘Too Late’ Powell — who has officially run out of excuses and must cut the rates now.”

Pressure on the Federal Reserve

The revisions could heighten pressure on the Federal Reserve to cut interest rates more aggressively at its upcoming policy meeting. Fed Chair Jerome Powell had already hinted at the possibility of a rate cut in September. With the labor market weakening and inflation showing signs of easing, analysts now believe the Fed could opt for a double-sized rate cut to stabilize economic momentum.

Outlook

The unprecedented revision raises serious questions about the accuracy of U.S. labor data and the challenges facing policymakers. While Trump allies argue the report validates criticism of Biden’s economic record, economists warn the deeper issue is a labor market losing steam, complicating the Fed’s balancing act between growth and inflation.