Stalling Employment: Impact of Tariffs and AI on U.S. Job Growth

The U.S. economy has been hit hard, with a revision suggesting 911,000 fewer jobs were created from April 2024 to March 2025 than initially reported, according to a government disclosure on Tuesday. This indicates a stalling job growth even before tariffs imposed by the Trump administration took effect.

The Bureau of Labor Statistics (BLS) announced that employment levels in the 12 months through March 2024 would be adjusted downward by 598,000 jobs. This preliminary figure is part of an annual "benchmark" revision to payroll data, aligning it with the Quarterly Census of Employment and Wages (QCEW) for accuracy.

In addition to tariff-related uncertainty, labor market pressures are compounded by immigration policies and a shift towards automation. Despite the sharp job growth slowdown, economists predict minimal immediate impact on monetary policy, with the Federal Reserve likely to lower interest rates to mitigate economic challenges.

(With inputs from agencies.)