Massive Job Growth Revision Raises Eyebrows: 911,000 Jobs Lost in Latest Labor Report
U.S. Job Growth Revised Significantly Downward Through March 2025, Highlighting Economic Uncertainty
The U.S. labor market shows a big drop in job growth. The data now cuts nonfarm payroll jobs by 911,000 for the 12 months before March 2025. Wall Street had seen a drop between 600,000 and one million jobs, so the new number is worse than experts expected.
What the Revision Reveals
The report uses complete sets of data. It pulls records from the Quarterly Census of Employment and Wages and tax returns. This method brings job numbers close together for a better view of the market. The drop of 911,000 jobs is more than 50% larger than the change seen last year. Last year’s revision was the biggest drop since 2009. The change shows a softening in the market that had not been seen before. Although the numbers go back 18 months, recent counts raise fresh concerns. The summer months of June, July, and August 2025 had a monthly payroll gain of only 29,000 jobs. That small increase does not help keep unemployment steady.
Sector-Wise Impact
The new job counts fall across many sectors. The most affected areas show these drops:
- Leisure and Hospitality: down by 176,000 jobs
- Professional and Business Services: down by 158,000 jobs
- Retail Trade: down by 126,200 jobs
Most private sectors lose jobs in the new report. In contrast, transportation with warehousing and utilities see a slight rise. Government jobs fall as well, by about 31,000 compared with earlier numbers.
Political and Economic Context
Critics now question how the BLS gathers its data. The smaller job counts have raised hints at trouble. The issue caught the White House’s eye after previous low counts and unsatisfactory job reports. In July 2025, a report that cut the job number further led President Donald Trump to choose a new BLS leader. He picked economist E.J. Antoni from the Heritage Foundation over then-commissioner Erika McEntarfer. Yet, data in August still shows weakness. For example, the June job count now shows a drop of 13,000 jobs. This is the first decrease since December 2020. While monthly numbers come from quick surveys, these annual changes use large amounts of data. They serve as a clear sign of the economy’s state.
Looking Forward
The current figures are preliminary. More changes will come when the final report is released in February 2026. For example, the 2024 report first reduced job counts by 818,000 before settling at a 598,000 drop. Out of about 171 million workers, a loss of 911,000 jobs makes up nearly 0.6% of the total. Even a small percentage can have deep political and economic impact. Weak signs in the job market back President Trump’s calls for Federal Reserve rate cuts to boost the economy in these uncertain times.
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