WASHINGTON (Reuters) - The U.S. economy likely created 462,000 more jobs in the 12 months through March than previously estimated, the Labor Department's Bureau of Labor Statistics said on Wednesday.
The reading is a preliminary estimate of the BLS' annual "benchmark" revision to the closely watched payrolls data.
The private sector will likely account for all the upward revision, with an estimated additional 571,000 jobs. Government payrolls are likely to be cut by 109,000 jobs.
"While an 'extra' 462,000 jobs is notable to some degree, it boosts employment growth by only 39,000 jobs per month on average over the year through March 2022," said Daniel Silver, an economist at JPMorgan (NYSE:JPM) in New York.
The economy recouped all the jobs lost during the COVID-19 pandemic recession in July, but Silver said "there is a chance that this moves somewhat earlier as a result of the benchmark revision."
Professional and business services will likely lead the upward revision, with an expected 270,000 additional jobs. Transportation and warehousing employment is set be raised by 151,600 jobs, while leisure and hospitality could see 140,000 positions added to payrolls.
Notable upward revisions are expected for construction, information, finiancial activities and wholesale trade. But retail trade payrolls could be slashed by 323,300 jobs.
Once a year, the BLS compares its nonfarm payrolls data, based on monthly surveys of a sample of employers, with a much more complete database of unemployment insurance tax records.
A final benchmark revision will be released in February along with the BLS' report on employment for January. Government statisticians will use the final benchmark count to revise payroll data for months both prior to and after March.