Recently, the jobs numbers had to be revised downward, exposing a massive error by the Biden administration in overreporting employment. Under Biden, job numbers were corrected four times, the worst being in August 2024, just ahead of the election, when one of the largest downward revisions in history was announced.
At the same time, President Trump was battling Fed Chairman Jerome Powell, demanding a reduction in interest rates. Powell cut rates just before the election, which many believed was politically motivated, allowing Biden to tout inflated jobs numbers alongside lower rates.
More recently, Powell has justified his refusal to cut interest rates by claiming that lower rates would fuel inflation. But that decision was based on Biden’s exaggerated jobs reports. The latest correction supports Trump’s argument that rates should, in fact, be cut.
Just this week (September 2025), the Bureau of Labor Statistics announced that U.S. employers added 911,000 fewer jobs than previously estimated for the 12 months ending in March 2025—the largest negative revision on record. It surpassed the August 2024 correction of 818,000, which at the time was the biggest since the global financial crisis. That revision badly hurt the Biden administration and the Kamala Harris campaign, as the estimate of new jobs between March 2023 and March 2024 was cut by nearly 30%. The only larger adjustment came in 2009, under Obama, when non-farm employment was reduced by 902,000.
Under Biden, downward revisions became routine. The administration overstated the number of jobs by 1.18 million in the year through March, or about 36% of the 3.24 million jobs initially claimed. In 2024, monthly job estimates were revised down by an average of 20,000, while in 2025 the revisions have been even steeper, averaging 66,000 from January through May.
Since Trump began his second term, Biden’s inflated jobs reports gave the Federal Reserve pretext to keep interest rates high. In June and July 2024, The New York Times reported that strong jobs data reinforced the Fed’s stance that it could delay cutting rates. The Fed eventually reduced rates by 50 basis points in September 2024, the first cut in four years, followed by two 25-point cuts in November and December. Chairman Jerome Powell said the September move reflected inflation being “much closer” to the 2% target and a labor market “less tight” than before the pandemic.
Trump, however, blasted both the jobs data and Powell’s actions. He called the August 2024 revision a “total lie” and “a scandal,” accusing the Harris-Biden administration of “fraudulently manipulating job statistics to hide the true extent of the economic ruin.” On Truth Social, he branded Powell “Jerome ‘Too Late’ Powell,” arguing that rates should have been cut long before. Trump also accused the Fed of “playing games” by lowering rates just before the election “in the hopes of getting ‘Kamala’ elected.”
The White House press secretary later declared: “Today, the BLS released the largest downward revision on record, proving that President Trump was right: Biden’s economy was a disaster and the BLS is broken.” Labor Secretary Lori Chavez-DeRemer added: “Jerome Powell needs to do his job and cut those interest rates now” and said Powell “should be embarrassed by this report, because he has not done his job.”
The dramatic revision, cutting U.S. job growth by 911,000 since 2024, has “intensified” Trump’s anger at Powell and is “adding fuel to Trump’s criticism of the Fed” ahead of the September meeting. Some analysts now argue that a 50-basis-point cut “could amount to an admission that Fed Chair Jerome Powell waited too long to cut.”
Trump’s frustration with the Bureau of Labor Statistics boiled over in August 2025 when he fired BLS Commissioner Erika McEntarfer, a Biden appointee. The decision came hours after the July 2025 jobs report showed only 73,000 jobs added, far below expectations, and included downward revisions of 258,000 jobs for May and June. Trump wrote: “McEntarfer said there were only 73,000 Jobs added (a shock!) but, more importantly, that a major mistake was made by them, 258,000 Jobs downward, in the prior two months.”
He pointed to the pattern: under Biden, the BLS overstated job creation by massive amounts (818,000 in 2024 and now 911,000 through March 2025), while under his own term McEntarfer was reporting weak numbers and repeated downward revisions. Trump accused her of having “faked the Jobs Numbers before the Election to try and boost Kamala’s chances of Victory.”
On Wednesday, the Bureau of Labor Statistics will downward revise jobs for the April 2023-March 2024 period by up to 1 million. This means that all “beats” recorded in the past year will have been misses and the US job market is in far worse shape than the admin would admit.
— zerohedge (@zerohedge) August 18, 2024
The evidence confirms there were indeed unprecedented downward revisions to jobs numbers during the Biden administration, with the August 2024 revision of 818,000 jobs being among the largest in history, and the recent September 2025 revision of 911,000 jobs now representing the largest revision on record.
The Federal Reserve explicitly cited strong jobs reports as justification for maintaining higher rates through much of 2024, which appears to validate Trump’s longstanding criticism that rates should have been cut sooner, given that the job market was significantly weaker than the data initially suggested.
While these revisions are part of the normal annual benchmarking process, their magnitude was unusually large and their timing had significant political and economic implications.
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