WASHINGTON–While the labor market remains sound, the numbers aren’t quite as strong following a downward revision of 500,000 jobs by the Department of Labor—although the market remains tight in the financial services field. The DoL has made a revision in its analysis of job gains from April 2018 to March 2019 by 501,000, the largest downward revision in a decade.
According to the DoL, the revision is based on state unemployment insurance records that reflect actual payrolls, while earlier estimates were derived from surveys. The preliminary figure could be revised again in early 2020, the department said.
The change means job growth averaged 170,000 a month during the 12-month period ending at March 31, 2019, down from the 210,000 initially estimated, according to analysis by JPMorgan Chase.
Two Bellwether Categories
Specifically, numbers were revised down in a number of industries, including a downward revision of 175,000 jobs in the leisure and hospitality category, and 146,000 jobs in retail. Those are two “bellwether service sectors that depend heavily on consumer spending, the economy’s main engine,” noted one analyst.
Employment also revised downward by 163,000 jobs in professional and business services and 69,000 in education and health services.
A few industries did see modest increases in employment, including 33,000 new jobs in “information,” which includes movies, broadcasting, publishing, telecommunications and some technology services. The DoL also said 20,000 jobs were added in “financial activities.”