US job market: Employment numbers weaker than expected in 2024-25; over 911k fewer positions created

The US job market turned out to be much weaker in 2024 and the early part of this year than initially reported, newly released government figures have shown, adding to concerns about the state of the country’s economy. Fresh estimates by the US labour department on Tuesday highlighted that employers hired 911,000 less workers between April 2024 to March than originally reported. The figures are part of annual benchmark revisions, which adjust for businesses that opened or closed during the period. These numbers are, however, preliminary, with the final set due in February 2026. The breakdown highlights major shortfalls in key sectors. Hotels, restaurants and other leisure and hospitality businesses accounted for 176,000 fewer jobs than earlier reported. Meanwhile, professional and business services firms also employed 158,000 fewer people, while retail companies were down by 126,000. The announcement comes just days after the department revealed that the economy created only 22,000 jobs in August, intensifying worries that US President Donald Trump’s unpredictable economic stance, including sudden tariffs on imports has unsettled employers and dampened hiring. This is the second year in a row the revisions have exposed a sharp slowdown. Last time’s update cut 818,000 jobs from the April 2023 to March 2024 period. Trump, then running for president, argued the figures had been “rigged” to mask economic weakness and benefit Democrats ahead of the 2024 election. He did not explain why the government would publish such data two and a half months before the vote. With the labour market now looking weaker than previously believed, pressure is mounting on the Federal Reserve to act.