Largest Payroll Revision in U.S. History

Benzinga

The U.S. just admitted to overstating job growth by 911,000, marking the largest payroll revision in history. For over a year, monthly gains were reported at 147,000 jobs, but the true number was only 71,000. Retail, hospitality, manufacturing, and professional services all saw major cuts, while only transportation and utilities showed slight gains. The S&P dropped on the news, and traders are now expecting a Fed rate cut this fall.

Transcript

00:00The U.S. just admitted it overstated job growth by 911,000, the biggest payroll revision in history.

00:07For over a year, we've been told that the labor market was adding on average 147,000 jobs a month.

00:13Turns out it was only 71,000.

00:16That's nearly half the growth we were told.

00:18Every major sector took a hit.

00:20Retail slashed by 126,000 jobs.

00:23Hospitality down 176,000 jobs.

00:26Manufacturing cut 95,000.

00:28And even professional services lost 158,000.

00:31Only transportation and utilities showed slight gains.

00:35Wall Street reacted fast, the S&P dropped, and now traders are expecting a Fed rate cut come this fall.

00:41This revision is larger than what we saw during the great financial crisis.

00:45Do you think this is the ultimate proof that the economy is already in trouble?

00:49Drop your thoughts and follow Benzinga for more real-time news.

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