The U.S. labor market added 911,000 fewer jobs than previously reported for the 12-month period ending in March 2025, according to the Bureau of Labor Statistics (BLS). This significant downward revision indicates that the labor market was weaker than earlier estimates suggested. The BLS released this information on Tuesday, highlighting a more pronounced slowdown in hiring than economists had anticipated.

The revision, known as the preliminary benchmark revision, is conducted annually by the BLS to better reflect changes in the job market, including businesses that have opened or closed. This year's revision was larger than the expected decline of approximately 800,000 jobs. The BLS noted that the monthly jobs report sometimes misses these changes, which can lead to inaccuracies in the data.

The announcement comes amid concerns about the labor market's health, particularly following a disappointing jobs report for August. Economists are interpreting the downward revision as a sign of increasing challenges in the job market, which could influence the Federal Reserve's decision to cut its benchmark interest rate at its upcoming meeting on September 17.

"Today's data suggests cooling in the labor market is more dramatic than previously thought," said Elizabeth Renter, a senior economist at NerdWallet. She added that this information strengthens the likelihood of a rate cut, as it indicates that the labor market requires attention.

The annual revisions are based on updated data from the Quarterly Census of Employment and Wages (QCEW), which tracks employment and wages from over 95% of U.S. jobs. This data helps the BLS account for businesses that may not respond to monthly surveys, making it difficult to track employment changes accurately.

The revision follows a period of scrutiny for the BLS, particularly from the Trump administration. President Trump recently expressed doubts about the validity of the monthly jobs report, which included a significant downward revision. He subsequently fired BLS Commissioner Erika McEntarfer, citing frustration with the agency's reporting.

McEntarfer, who was appointed by President Biden and had served in the federal government for two decades, expressed her gratitude for the opportunity to lead the BLS. "It has been the honor of my life to serve as Commissioner of BLS alongside the many dedicated civil servants tasked with measuring a vast and dynamic economy," she stated in a social media post after her dismissal.

William Beach, a former BLS commissioner appointed by Trump, criticized McEntarfer's firing, calling it a dangerous precedent that undermines the agency's statistical mission. The BLS continues to play a crucial role in tracking key economic indicators, including employment and inflation.