Nearly A Million Jobs Disappeared From U.S. Economy Proving Trump Was Right About The Data – Financial Freedom Countdown
The Bureau of Labor Statistics (BLS) reported Tuesday that the U.S. economy added 911,000 fewer jobs in the 12 months ending March 2025 than previously reported.
Originally, the BLS had estimated 1.76 million new jobs, but the revised figure shows only 849,000 jobs; cutting the average monthly gain from 147,000 to just over 70,000.
Economists call this the largest preliminary job revision on record and warn it paints a far weaker picture of the labor market than previously understood.
Industries Hit Hardest by the Cut
The job losses were uneven across sectors.
The leisure and hospitality industry; including restaurants and hotels, lost 176,000 jobs compared to prior estimates.
Retail, professional and business services, wholesale trade, and manufacturing also saw significant downward adjustments.
In percentage terms, the information sector experienced the steepest hit.
These revisions suggest that sectors once thought resilient were, in fact, underperforming.
The Fed’s Next Move: Rate Cut Pressure Mounts
The timing of this data release is critical.
With weaker-than-expected job growth, the Federal Reserve faces mounting pressure to cut interest rates at its September 17 meeting.
Unemployment in August climbed to 4.3%, and futures markets now assign a 99% probability of at least a quarter-point rate cut.
The revised data sets a new baseline for assessing labor-market strength, potentially influencing monetary policy decisions for months to come.
Trump’s Warnings Now Proven Accurate
President Trump had repeatedly criticized the BLS, claiming its job numbers were inflated to favor Democrats during the 2024 election and fired former commissioner Erika McEntarfer amid controversy.
The massive downward revision now validates his warnings about the state of the economy during last year.
Trump’s team and the White House argue the data confirms their long-standing claim that official job numbers misrepresented the economy’s health under Biden.
Bessent and National Economic Council Director Kevin Hassett criticized the BLS ahead of the agency’s revisions, as Bessent said, “I’m not sure what these people who collect the data have been doing,” while Hassett suggested recent downward revisions are “why we need new and better data.”
Political Fallout Ahead of the 2024 Election
The revised data has major political implications.
Analysts note that Trump’s skepticism of BLS numbers during the 2024 campaign now appears prescient.
The figures call into question the state of the job market heading into the election, potentially reshaping narratives around Biden’s economic stewardship and bolstering Trump’s credibility with voters.
History of Large Revisions
This is not the first time BLS data has been substantially revised.
Last year, the BLS issued a downward revision of 818,000 jobs for the same annual period, reducing the average monthly job growth for the 12 months ending March 2024.
The downward revisions announced last year during election season confirmed what many Americans had been experiencing in the job markets.
Why the BLS Got It Wrong
BLS officials attribute the discrepancy to survey limitations.
The monthly report is based on about 121,000 employers, and businesses that don’t respond or newly formed firms aren’t immediately counted.
The agency’s birth-death model, used to estimate new business openings and closures, failed to fully account for new economic shifts. Consequently, job growth was overstated for more than a year.
Economists Split on Economic Impact
While some economists argue the revised data is part of the normal correction process, others warn it may indicate early signs of a slowdown or even a potential recession.
The discrepancy between reported and actual job growth suggests that policymakers may have been making decisions based on an overly optimistic view of the labor market.
Data Integrity at Stake
Trump’s firing of BLS chief McEntarfer and replacement with Heritage Foundation economist E.J. Antoni has sparked debate about politicization of data.
Economists, including the National Association for Business Economists, warn that political interference threatens the credibility of the U.S. statistical system.
The latest revision intensifies scrutiny on how federal agencies produce labor data and the need for transparent, reliable reporting.
What the Numbers Really Mean
The U.S. added 911,000 fewer jobs than previously reported.
Major sectors, including leisure, retail, and professional services, were hit hardest.
Trump’s repeated criticisms of BLS data have been validated by the revision.
The Federal Reserve may respond with a rate cut as the weaker baseline reshapes monetary policy decisions.
Political and economic ramifications are significant, influencing voter narratives and market expectations.
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John Dealbreuin came from a third world country to the US with only $1,000 not knowing anyone; guided by an immigrant dream. In 12 years, he achieved his retirement number.
He started Financial Freedom Countdown to help everyone think differently about their financial challenges and live their best lives. John resides in the San Francisco Bay Area enjoying nature trails and weight training.
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