Government: US economy added 818,000 fewer jobs than originally reported in year ended March

The US economy created 818,000 fewer jobs from April 2023 to March of this year than originally reported, according to the government.

WASHINGTON — The U.S. economy added 818,000 fewer jobs from April 2023 to March of this year than originally reported, the government said Wednesday. The revised total adds evidence that the labor market is slowing and likely strengthens the Federal Reserve’s plan to start cutting interest rates soon.

The Labor Department estimated that average job growth was 174,000 per month in the 12 months ending in March — down 68,000 per month from the 242,000 it originally reported. The revisions released Wednesday were preliminary, and final numbers are due in February of next year.

The downgrade came after a much worse-than-expected July jobs report, prompting many economists to suggest the Fed waited too long to start cutting interest rates to support the economy. The unemployment rate rose for a fourth straight month in July to a still-low 4.3%, and employers added just 114,000 jobs.