US payroll revision signals cooler but still healthy labor growth: Report

ISTANBUL

The recent revision made in US payroll figures signal a cooler but still a healthy labor market growth in the country, according to report released Friday.

The non-farm payroll growth in the US was revised down by 818,000 for the 12-month period ending March this year, according to the latest Labor Department figures released Wednesday.

The latest figures showed that 2.1 million jobs were added during the April 2023 - March 2024 period, instead of 2.9 million initially reported.

Mitchell Barnes, an economist for the Labor Markets Institute within the Economy, Strategy, and Finance Center of The Conference Board, said even with the revision, payroll growth was healthy in 2023 and in the first quarter of 2024.

The latest figures translate to an average 68,000 of fewer payroll additions per month over 12-month period, he said, adding, "The downgrades do not alter the story of a gradual but sustainable labor market normalization, but do add to the growing evidence of softening signals in recent months."

Barnes noted that the Federal Reserve Chair Jerome Powell acknowledged in June payrolls could be “overstated" and said: "Labor market data have produced signals in recent months that have Fed officials on alert for continued softening."

"Over that same period of revision, consumer spending remained strong, GDP growth surprised to the upside, and inflation continued to moderate," he said. "So far, there have been few layoffs or a substantial uptick in unemployment claims that could lead to broader deterioration."