From the spring of 2023 to the spring of 2024, the U.S. added 818,000 fewer jobs than was previously thought. This shows that the job market started to slow down earlier and faster than it seemed at the time.
Based on the government’s new estimate of job growth, the economy added about 2.1 million jobs from April 2023 to March 2024. At first, it was thought that 2.9 million more jobs would be created during that time.
According to the new employment numbers, the economy added 173,000 jobs each month during the time period in question, down from 242,000 jobs per month in the old estimates.
The smaller number of new jobs created makes it even more likely that the Federal Reserve will lower interest rates in September, as most people expected. The law says that the central bank has to keep inflation low and job growth high.
The Federal Reserve has put more weight on the health of the job market when deciding when to lower U.S. interest rates because inflation is slowly falling toward its goal of 2%.
To stop the biggest inflation in 40 years, the Federal Reserve raised a key short-term rate to a level not seen in 23 years in 2022 and 2023.
