Department of Labor Revisions Undermine Biden’s Job Gains Celebrated for Months

By Matthew Holloway |

The U.S. Department of Labor has revised its job creation figures, revealing an overestimate of nearly 30%. This adjustment results in approximately 818,000 fewer jobs than the previously reported 2.9 million created during the last year. According to the department, monthly job creation averages dropped from 242,000 to 174,000, translating to a total of about 2.08 million jobs.

Rep. David Schweikert (R-AZ), Vice Chairman of the Joint Economic Committee, stated, “This significant downward revision from BLS confirms what we’ve known since January 2021: that the U.S. economy is much weaker than President Biden and Vice President Harris have suggested.” He criticized the administration’s policies, asserting that excessive spending and regulations under the Biden administration have made life harder for American families.

This revision is part of a routine process, but it follows a similar surprise adjustment the Federal Reserve Bank of Philadelphia made in 2022, slashing a job creation estimate from a million to just 10,500. Such discrepancies highlight the volatility of federal job estimates, particularly in an election year.

Despite previous claims of robust job creation, the most recent adjustments have led to skepticism around administration figures, especially since the latest revision represents the largest downward adjustment in 15 years. Economists predict that these changes may influence Federal Reserve policies moving forward.

The sectors most impacted by this downward revision include professional and business services, which saw a decrease of 358,000 jobs, followed by the struggling leisure and hospitality industries, down by 150,000. Manufacturing and trade sectors also reported significant losses, with 115,000 and 104,000 jobs revised downward, respectively.

While President Biden has touted the creation of nearly 800,000 manufacturing jobs, the new figures suggest that this number may have been exaggerated significantly. Despite this, White House economist Jared Bernstein maintains that the overall job recovery remains strong, citing solid wage gains and consumer spending.

Meanwhile, Goldman Sachs economists have speculated that the Bureau of Labor Statistics may have overstated these revisions by as much as half a million jobs, attributing some discrepancies to undocumented workers not accounted for in unemployment data.

Former President Donald Trump expressed outrage over the revision, claiming it revealed fraudulent manipulation of job statistics. He warned that inaccuracies in reporting could lead to a dire economic future if the current administration remains in power.

The Department of Labor’s final benchmark revision is expected to be published in February 2025.

Matthew Holloway is a reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.