Government: U.S. economy added 818,000 fewer jobs than first reported in year that ended in March

The U.S. economy created 818,000 fewer jobs than originally reported from April 2023 through March of this year, the government said

WASHINGTON — The U.S. economy created 818,000 fewer jobs than originally reported from April 2023 through March of this year, the government said Wednesday. The revised total adds to evidence that the labor market is slowing and likely reinforces the Federal Reserve’s plan to begin cutting interest rates soon.

The Labor Department estimated that job growth averaged 174,000 per month in the 12 months that ended in March — a decline of 68,000 per month from the 242,000 initially reported. The revisions released Wednesday were preliminary, with final figures to be issued in February of next year.

The downgrade follows a much worse-than-expected July jobs report, leading many economists to suggest the Fed waited too long to cut interest rates to support the economy. The unemployment rate rose for a fourth straight month in July to a still-low 4.3%, and employers added just 114,000 jobs.