U.S. employment data may face significant downward revisions as the labor market slowdown may come earlier than expected.

On September 8, [Block Rhythm], the employment growth in the United States over the year ending in March may be far weaker than the robust figures currently reported by the government, highlighting that the U.S. labor market had already entered a slowdown phase before the hiring deceleration that began this summer.

Economists from Wells Fargo, Lianxin Company, and Panthion Macro expect that the non-farm annual benchmark revision data released by the U.S. Bureau of Labor Statistics on Tuesday will show that employment in March was nearly 800,000 less than currently estimated, averaging about 67,000 fewer jobs per month. Nomura Securities, Bank of America, and Royal Bank of Canada stated that the downward revision could even approach 1 million.

Although this data is slightly outdated, a significant downward revision will indicate that the momentum in last year's labor market has greatly weakened, reinforcing market expectations for a series of interest rate cuts by the Federal Reserve. A substantial revision of employment data for the second consecutive year may also provoke anger from President Trump, who has criticized the accuracy of the Labor Statistics Bureau's data.