U.S. Job Growth Overstated by 60,000 Monthly, Fed Chair Suggests

Federal Reserve Chair Jerome Powell has cast doubt on the strength of the U.S. labor market, suggesting job growth may have been overstated by an average of 60,000 positions per month from April to September. Initial reports indicated a monthly gain of 43,000 jobs during this period, but revised figures could show a net loss of 20,000 jobs monthly.

The discrepancy raises concerns about the true health of the economy. A weaker labor market could dampen wage growth, consumer spending, and overall economic confidence—factors that may influence the Fed's future decisions on interest rates.

While Powell didn't specify the source of these estimates, they likely stem from internal Fed research. Official confirmation may come next year when the Bureau of Labor Statistics completes its annual benchmark revisions.