The downward revision of over 800,000 in the U.S. non-farm payrolls may intensify market concerns about the Federal Reserve falling behind the situation in terms of interest rate cuts

ChainCatcher news reports that, according to Jinshi, the U.S. Department of Labor has released the preliminary report for the first quarter of 2024 on non-farm employment and wage surveys (QCEW). New data shows that U.S. job growth is significantly weaker than initially reported. The U.S. Bureau of Labor Statistics indicated that the preliminary estimate for the annual benchmark revision shows a downward adjustment of 818,000 in total non-farm employment in the U.S. as of March 2024, a decrease of 0.5%, marking the largest adjustment since 2009. Previously, some institutions even predicted a reduction of up to 1 million.

The revised data may once again raise concerns among markets and economists, who believe that the deterioration of the labor market is occurring much faster than initially expected. This data could intensify worries that the Federal Reserve is falling behind the curve in terms of interest rate cuts. The data released on Wednesday will help influence Federal Reserve Chairman Powell's latest assessment of the labor market, as Powell is scheduled to speak at the Federal Reserve's annual symposium in Jackson Hole, Wyoming, on Friday.