US payrolls slashed amid intense Fed cut pressure
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The news: Jobs growth in the US economy over the year to March 2024 was significantly weaker than previously reported, according to fresh estimates from the Bureau of Labor Statistics (BLS).
The numbers: The number of jobs added during that period was revised down by 818,000, bringing the total to 2.1 million, according to the preliminary data.
It was the largest revision since 2009, revealing a slower labour market than initially thought and adding to concerns about a potential recession.
The context: Market reaction was muted given that although significant, the revisions were within the range of what had been anticipated by the market and mostly coming from cyclical sectors, analysts said.
The revisions, which will be finalised in early 2025, come as pressure mounts on the Federal Reserve to cut interest rates, with a reduction likely at the September meeting.
The sources: US Bureau of Labor Statistics , FT, Bloomberg
