U.S. Job Growth Overestimated: A Closer Look at Labor Market Realities

The U.S. government reported that 911,000 fewer jobs were created over the past year than initially estimated. This suggests job growth was already stagnating before President Trump's tariffs came into play.

The Labor Department's revision equates to 76,000 fewer jobs per month, implying nonfarm payroll gains averaged only 71,000 monthly instead of 147,000. Economists were caught off guard by such a stark adjustment.

Trade policy uncertainties, immigration policies, and automation are cited as factors affecting labor supply and demand, potentially exacerbating the economic slowdown. Critics, however, view the revision as overstated, raising concerns over inflation and stagflation.