Shocking Job Revisions Wipe Out 258,000 Positions From U.S. Economy
The Labor Department issued eye-opening revisions Friday that reveal the U.S. economy added 258,000 fewer jobs in May and June than previously reported — a sharp correction that reshapes the recent narrative of labor market strength.
According to updated figures from the Bureau of Labor Statistics (BLS), May saw just 19,000 new jobs, a dramatic downgrade from the original estimate of 144,000. June’s numbers were also slashed to 14,000, far below the earlier figure of 147,000.
With only 73,000 jobs added in July, the total for the past three months now stands at just 106,000 — a bleak picture for an economy many believed was on stronger footing.
“This is a reality check,” said Mark Hamrick, senior economic analyst at Bankrate. “Private-sector hiring has essentially stalled, averaging just over 50,000 jobs a month — that’s not growth, that’s stagnation.”
While monthly revisions are standard, the scale and timing of these corrections shocked economists, especially coming on the heels of stronger-than-expected inflation and GDP data earlier in the week.
The July report showed hiring slowing across nearly every major sector, with the exception of health care. Manufacturing, retail, and tech sectors posted negligible growth or outright losses.
All of this landed just days after the Federal Reserve kept interest rates steady, though two board members dissented in favor of rate cuts.
President Trump, in a series of posts on Truth Social, slammed Fed Chair Jerome Powell and called on the board to override him. “The Fed is killing jobs, plain and simple,” Trump wrote Thursday night.
But the Fed is now facing a complex dilemma: Cutting rates could boost hiring but risks further inflation, while holding steady could suppress job growth even more.
Economist Gregory Daco of EY-Parthenon warned that “the labor market is showing signs of structural weakness.” He added that ongoing policy whiplash, tariffs, and tight immigration are “paralyzing employers” and leaving the Fed “behind the curve.”
With both the White House and central bank under pressure, Friday’s data raises new alarms about whether the U.S. economy can sustain momentum — or if a broader slowdown is already underway.
