U.S. created 500,000 LESS jobs last year than initially reported, according to revised figures that weakens Trump’s claim his tax cuts stimulated hiring
- The revision in jobs numbers was reported in new data released on Wednesday by the Bureau of Labor Statistics
- Report found that 501,000 fewer jobs were created in 2018 and in the first three months of this year
- The figures essentially weaken President Donald Trump’s claim that his tax cuts in 2017 stimulated hiring
- Retail, business services and hospital sectors experienced the biggest revisions
Employers in the U.S. actually created 500,000 fewer jobs last year than was initially reported.
The revision in jobs numbers was reported in new data released on Wednesday by the Bureau of Labor Statistics.
The report found that 501,000 fewer jobs were created in 2018 and in the first three months of this year.
The figures essentially weaken President Donald Trump’s claim that his tax cuts in 2017 stimulated hiring.
The revisions, which are preliminary, don’t change the overall picture of the job market.
Employers in the U.S. actually created 500,000 fewer jobs last year than was initially reported. The figures essentially weaken President Donald Trump’s claim that his tax cuts in 2017 stimulated hiring
The retail, business services and hospital sectors experienced the biggest revisions.
According to the data, retail was found 146,000 jobs, professional and business services were down 163,000 and leisure and hospitality were down 175,000.
Economist Greg Daco said the revision was largest from the bureau since 2009.
‘Prelim Current Employment Statistics revisions shows massive 501,000 downward revisions to non-farm payrolls,’ he tweeted.
The economist predicted that job growth would slow in the coming months.
‘New data reveals slower employment growth (we extrapolated revisions) going into 2020. Maturing #labor market will mean less job growth going forward,’ he tweeted.
Final employment data won’t be published until February next year.
Economist Greg Daco said the revision was largest from the bureau since 2009
It comes after Trump considered cutting taxes to promote economic growth before changing course and saying he would abandon the idea because the nation already had a ‘strong economy’.
Trump’s flip-flop came after recent market volatility and economic uncertainty, and amid a debate about whether the U.S. was heading for a slowdown that would imperil his reelection chances.
Trump earlier this week acknowledged, for the first time, that his China trade policies may mean economic pain for Americans, though he insisted the tariffs are needed for more important long-term benefits.
‘I’m not looking at a tax cut now,’ he told reporters at the White House on Wednesday. ‘We don’t need it. We have a strong economy.’
Analysts have warned that a slowdown, if not full-blown recession, could hit before next year’s election. Trump, however, has largely praised the economy’s performance and his handling of it.