Job Market Revisions Expose Deeper Weakness in U.S. Economy

The façade of a “strong jobs market” under the Biden years is crumbling fast. On Fox Business, John Lonski, President of the Lonski Group, broke down the latest data revisions and inflation concerns — and the picture isn’t pretty.

One Million Jobs Disappear in Revisions

The Bureau of Labor Statistics (BLS) just admitted the U.S. economy added nearly a million fewer jobs in the 12 months ending in March than originally reported. That staggering downward revision wipes away half the supposed job growth that politicians and media allies touted over the past year.

The problem, as Lonski noted, is the faulty collection process itself. Ten years ago, about 60% of surveyed employers responded to the establishment survey. Today, participation has plunged to around 40%. With fewer responses, the numbers become little more than guesswork — a dangerous foundation for economic policy.

Couple that with the disappointing August report — only 22,000 jobs created — and the trend is clear: the slowdown began much earlier than Washington admitted. Manufacturing shed 78,000 jobs, the federal government cut 86,000, and revisions for June even turned negative.

Inflation Still Squeezing Families

On top of the weak jobs picture, Americans are still being crushed by inflation. Producer price and consumer price reports are due this week, but Lonski says the reality for middle-class families is obvious:

“A lot of consumers, middle class Americans, are currently being burdened by an elevated cost of living. I don’t care what the report says.”

While headline inflation may hover around 3%, core inflation remains stubbornly above that mark. Everyday Americans aren’t feeling relief — they’re feeling squeezed at the grocery store, at the gas pump, and on their utility bills.

What the Fed Might Do Next

The Federal Reserve is now under pressure to act. Wall Street consensus expects a modest 25-basis-point cut in interest rates, but Lonski argued that the economy needs a 50-basis-point cut to head off further weakening.

Mortgage rates are another concern. Even with some easing, the average 30-year mortgage is still around 6.35%. According to Lonski, the housing market won’t see real recovery until rates fall below 5.5% — a level that would require substantially lower Treasury yields.

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Politics and Policy Collide

The bigger question is how long the American people can trust economic data that keeps getting revised down months after the fact. While experts claim revisions are “normal,” the scale of the recent changes — nearly a million phantom jobs — is fueling distrust.

President Trump has already made it clear he wants honest reporting and real accountability at the BLS. After firing the former commissioner for overseeing misleading reports, the administration is signaling it won’t tolerate the kind of statistical fog that props up bad policy.

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U.S. Job Market is Stalling

The job market isn’t just slowing — it’s stalling. Inflation remains sticky, mortgage rates are high, and the Federal Reserve looks timid. The Biden-era spin on “job creation” is unraveling, and the reality is catching up fast.

For American workers and savers, the stakes are enormous. Without bold rate cuts and honest data, the economy could drift toward stagnation. As Lonski put it, we may be staring at sub-3% interest rates by early 2026 — not because of healthy growth, but because the economy is sliding into something much weaker than advertised.

Worried about inflation, weak job growth, and the Fed’s next move? 

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