Labor Markets

Revisions to macroeconomic data happen. Frequently. To almost all major releases, not just nonfarm payroll employment. Sometimes those revisions are large, and they are often largest at critical inflection points in the business cycle. Some of the largest revisions to employment and GDP transpired around the 2007-09 Great Recession, where

Job growth has slowed sharply, and even if one attributes a large part of that to slowing labor supply from lower immigration, prime-age employment rates are now down 0.5pp from a year ago

On the whole, this is a good jobs report. It’s hard to find much fault with the data here, and it significantly diminishes the prospects of a July cut.

So far, pain from the tariffs has not shown up in any obvious way in the labor market data, and it may not for a few months.