The misappropriation of job gains by half a million was realized after preliminary revisions were conducted as necessitated in survey-based projections.
This procedure is usually done so that more alignment can be made with definitive data on the foundation of state unemployment insurance data.
According to the Labor Department, employers had incorporated half a million lesser jobs between 2018 and the beginning of 2019 as compared to what was previously stipulated.
Nevertheless, the revisions made do not alter the overall image of a thriving job market.
The job market was weaker in 2018
Information derived from the preliminary revisions indicated that 2018 was more fragile as compared to what had been previously projected. Expressly, this year had been stipulated to be among the best ones in terms of job growth.
Following the revision, in 2018, there was a high likelihood that hiring averaged below two hundred thousand (200,000) jobs monthly. This was a drop of twenty-three thousand (23,000) jobs compared to what had been reported initially.
However, this was a modest improvement as compared to the one hundred and seventy-nine thousand (179,000) jobs recorded monthly in 2017.
Job market revisions hit consumer-oriented sectors
The preliminary revisions conducted illustrated a poor performing consumer-oriented sector.
For instance, they indicated that retailers had reduced almost one hundred and fifty thousand (150,000) more jobs compared to what was originally projected. Additionally, hiring in the hospitality and leisure sector was considerably lower than stipulated.
Nevertheless, the revisions showed increased performance in the warehousing and transportation industry because of incredible online shopping. Expressly, close to eighty thousand (80,000) more jobs were added than initially projected.
These preliminary revisions have been the largest for a couple of years, though they were not surprising as various economists had speculated a level off in 2018’s job growth. This was based on several factors, such as a lower unemployment rate.
According to Stephen Stanley, Amherst Pierpoint Securities chief economist, 2018’s job growth pace was considerably opposite.
He also asserted that the revision was precise as it brought out the real picture of the job market last year. Conversely, Generation Z (those born between the mid-1990s and early 2000s) is continuously capturing the job market.