US Economy Faces Major Setback As BLS Expected To Revise Down Job Numbers By 1 Million
The Bureau of Labor Statistics (BLS) is poised to deliver a major revision to U.S. employment figures on Wednesday, potentially reducing the reported job count by up to one million positions for the period between April 2023 and March 2024. Such a correction would suggest that the labor market is far weaker than previously reported and raise questions about the accuracy of economic data presented by the Biden administration.
This anticipated adjustment comes amid growing concerns that official employment numbers have been artificially inflated, potentially obscuring the true state of the economy. The Biden-Harris administration has consistently promoted strong job growth as a key achievement, but this revision could undermine those claims and prompt scrutiny of how employment data has been reported.
While rare, large-scale revisions are not unheard of. Earlier this year, California’s Legislative Analyst’s Office (LAO) revealed that the state’s reported job gains were significantly overstated due to flawed early benchmarks. The BLS revision is expected to address similar discrepancies at the national level, adjusting figures that were likely skewed in favor of a more optimistic outlook.
This revision follows a disappointing July jobs report, which not only missed expectations but also saw an unexpected spike in the unemployment rate. Some economists now believe that the Sahm Rule, a key recession indicator, has been triggered, suggesting that the U.S. could already be in the early stages of an economic downturn.
As the BLS prepares to release its updated figures, the revision could have significant political and economic implications, casting doubt on the administration’s handling of the economy.
