The U.S. economy added 258,000 fewer jobs in May and June than originally reported, according to new data released Friday by the Bureau of Labor Statistics. The major downward revisions sharply altered the view of labor market strength and were part of a weaker-than-expected July jobs report.
May job gains were revised down from 144,000 to just 19,000, and June’s total dropped from 147,000 to 14,000. July saw only 73,000 new jobs, bringing the three-month average to just over 35,000. Bankrate’s Mark Hamrick called it a sign “hiring has hit a wall.”
While the BLS frequently revises figures, the size and timing of these adjustments rattled economists and investors, especially after recent data suggested steady economic activity.
President Donald Trump renewed attacks on Fed Chair Jerome Powell ahead of the report, urging other board members to oppose his monetary policy stance.
Economists warned the Fed now faces a dilemma: cutting rates could support hiring but risk higher inflation, while keeping rates steady could prolong labor market stagnation. EY-Parthenon’s Gregory Daco said the Fed is “behind the curve” as employers grow wary amid policy uncertainty, tariffs, and limited immigration.
Sources:
Discover more from News Facts Network
Subscribe to get the latest posts sent to your email.
