– US Department of Labor revises job growth forecast for March significantly downward
The estimate for total employment from April 2023 to March 2024 was revised downward by 0.5%.
Published today at 08:04
The hospitality sector recorded a decline of 0.9% from the previous estimate.
Bild: David Paul Morris/Bloomberg
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The US labor market has developed significantly weaker in the twelve months to March than previously assumed. On Wednesday, the Labor Department in Washington revised its estimate for total employment from April 2023 to March 2024 downwards by 818,000 jobs or 0.5%. The largest declines compared to the previous estimate were recorded in the services sector at 1.6%, followed by the hospitality and leisure sector at 0.9%. Employment in the public sector remained almost unchanged. The agency adjusted its figures upwards for some sectors, for example for logistics by 0.9% and utilities with an increase of 0.3%.
The adjustment casts a shadow over the US Federal Reserve. Investors fear that central bankers may have stepped on the brakes too hard. The Fed sees the cooling of the labor market as an important prerequisite for achieving its two percent inflation target in the long term. The monetary authorities are also focusing on wage growth. Recently, the US labor market, which had been booming for a long time, had weakened noticeably, increasing concerns about a downturn.
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REUTERS
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