Labor Dept Revises Job Growth Numbers, Overestimated by Over 800K

The Bureau of Labor Statistics (BLS) has admitted that job growth over the past year was significantly overestimated by more than 800,000 jobs. This sharp revision downward highlights a growing disconnect between the Biden administration’s rosy economic narratives and the harsh realities facing American workers.

The BLS reported on Wednesday that job growth from April 2022 to March 2023 would be revised down by a staggering 818,000 jobs. This adjustment, which amounts to roughly 0.5% of the total jobs in the economy, marks the largest downward revision in 15 years. The revision slashes the average monthly job growth over the period from 242,000 to just 174,000.

This dramatic reduction raises serious questions about the accuracy of the government’s economic data and casts doubt on the Biden administration's claims of a robust job market. According to The New York Times, these revisions are part of an annual review process, reconciling the original monthly estimates with more reliable, but slower-reported, state government records.

Key Points:

• Job growth over the past year was overestimated by 818,000 jobs, the largest downward revision in 15 years.

• The average monthly job growth was cut from 242,000 jobs to just 174,000, reflecting a much weaker labor market.

• These revisions could influence upcoming Federal Reserve decisions on interest rates, potentially impacting the broader economy.

Conservative commentators, like Daily Wire’s Ben Shapiro, were quick to respond to the news. Shapiro highlighted the timing and implications of this revision, calling it “amazing” for two reasons. First, it reveals that the administration has been misleading the public about job creation under Biden. Secondly, it conveniently sets the stage for a potential Federal Reserve interest rate cut ahead of the 2024 election.

These revised figures align with other economic indicators suggesting that the previous strong job reports were, at best, outliers, or at worst, a false narrative. Michelle Bowman, a member of the Federal Reserve’s Board of Governors, echoed this sentiment in a recent speech, noting the “risks that the labor market has not been as strong as the payroll data have been indicating.”

As the Federal Reserve meets next month, the reduction in jobs numbers could be a significant factor in their decision on interest rates. Lower rates could become a key talking point for Vice President Kamala Harris as she scrambles to craft an economic message that resonates with an increasingly skeptical electorate.

Wells Fargo economists Sarah House and Aubrey Woessner warned last week that a large negative revision would indicate that the supposed strength in hiring was already fading months ago. This adjustment makes the risks to full employment more apparent amid other signs of a weakening labor market.

As these revised numbers come to light, it’s clear that the Biden administration’s economic optimism was not just premature—it was fundamentally flawed.

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