The US Bureau of Labor Statistics (BLS) has issued a massive downward revision to its employment data, removing approximately 1 million jobs from the totals reported between April 2024 and March 2025. These adjustments, based on the Quarterly Census of Employment and Wages (QCEW), reveal that the labor market was significantly weaker than initially estimated. Following the revisions, the average monthly job growth for the period plummeted to just 15,000 positions. The update also incorporated changes to the birth-death model, providing a more accurate reflection of business creation and closures. This historic revision suggests a fragile economic foundation, likely increasing pressure on the Federal Reserve to implement more aggressive interest rate cuts. Consequently, markets are bracing for potential volatility in the US Dollar and a surge in demand for safe-haven assets like Gold and Treasuries.
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