US job growth revised sharply lower in year through March
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The news: Revised data from the Bureau of Labor Statistics shows that US job growth in the year through March was much weaker than previously reported, adding pressure on the Federal Reserve to lower interest rates.
The numbers: The number of workers on payrolls during the period is likely to be revised down by 911,000, almost 76,000 fewer per month, according to the government’s preliminary benchmark revision published by the BLS on Tuesday.
Prior to the revision, the US government’s payrolls data indicated employers added nearly 1.8 million total jobs in the year through March on a non-seasonally adjusted basis, or an average of 149,000 per month.
The final figures will be released in February 2026 and could be the largest revision on record.
The context: The adjustment suggests that the labour market slowdown which has been emerging in recent months followed a period of more moderate job growth than previously thought, prior to President Trumps trade tariffs, setting the scene for the Fed to begin a series of rate cuts when it meets next week. Traders have widely priced in a rate cut by the Fed at next week's meeting.
Chair of the Federal Reserve Jerome Powell has resisted persistent calls from Trump to begin cutting rates, however, last month began signalling that a rate cut was possible from September, citing labour risks.
The sources: Bureau of Labor Statistics, Bloomberg, Reuters
