Jobs growth in the 12 months ended March was revised down by a staggering 911,000 from initial estimates, the Bureau of Labor Statistics said Tuesday.
The US jobs market in the year leading up to the spring was significantly weaker than previously thought — raising jitters about the overall health of the economy and all but sealing the case for the Federal Reserve to finally cut rates next week.
The Bureau of Labor Statistics on Tuesday revised downward the number of jobs created during the 12 months ended in March by a staggering 911,000 — the biggest downward adjustment since 2000, including last year’s monster markdown of 818,000 jobs.
Wall Street had expected a drop of 600,000 to 1 million jobs in the data.
Economists expect the numbers — which translate to just 70,000 jobs being created each month versus the 147,000 that had been reported — will look somewhat better when they’re finalized in February. Still, year’s revision was adjusted to a still-painful loss of 598,000 jobs.
“The jobs picture keeps deteriorating and while that should make it easier for the Fed to cut rates this fall, it could also throw some cold water on the recent rally,” Chris Zaccarelli, chief investment officer for Northlight Asset Management, said in a note Tuesday.
“Worse still, if the CPI shows a worsening trend of higher inflation on Thursday then the market will begin worrying about stagflation.
