JPMorgan’s Jamie Dimon Says U.S. Economy ‘Is Weakening’ After Large Jobs Revision

JPMorgan Chase Chief Executive Jamie Dimon warned that the U.S. economy "is weakening" after government data showed far fewer payroll gains than previously reported, saying the revision intensifies uncertainty about whether the country is headed for a recession.

The Bureau of Labor Statistics revised the number of jobs added for the year through March downward by about 911,000, a change that Dimon said amounts to roughly 76,000 fewer jobs per month. Speaking on CNBC, Dimon said, "I think the economy is weakening. Whether it's on the way to recession or just weakening, I don't know," and added that officials will have to "wait and see." He also said the Federal Reserve will "probably" lower interest rates but suggested the cuts "might not be consequential to the economy."

Dimon pointed to a mix of softer consumer spending alongside continued robust corporate profits. The revised payroll figures have drawn attention from investors and policymakers because the labor market is a key gauge of economic health and a primary factor influencing monetary policy.

The jobs revision has prompted other economists to voice concern. Mark Zandi, chief economist at Moody’s Analytics, said a "labor recession" is already underway and warned that further data revisions and rising layoffs could push the broader economy into a full downturn. Zandi noted that layoffs are up about 140 percent from a year earlier and argued that if firms accelerate dismissals, the situation could evolve from a jobs recession into an overall economic contraction.

Zandi also cautioned that lower borrowing costs alone may not suffice to prevent a downturn, noting that markets have already priced in much of the expected benefit from anticipated Federal Reserve rate cuts. Federal Reserve Chair Jerome Powell has indicated that a reduction in the benchmark interest rate could come at the central bank’s next meeting, a prospect markets have been parsing alongside incoming economic data.

State-level data examined by Moody’s suggests uneven conditions across the country. Zandi has said that states accounting for nearly a third of U.S. gross domestic product, including Virginia, Connecticut and Delaware, were in or at high risk of recession, while other large economies such as New York, California and Hawaii remained steady. He described the overall picture as mixed, with segments of the country showing growth even as others weaken.

Market participants and corporate leaders have been closely monitoring labor market dynamics for signs of broader contagion. A weakening jobs picture could affect consumer spending, housing demand and corporate investment, and would influence how quickly the Federal Reserve moves to ease monetary policy.

Dimon’s comments add a prominent voice to a growing debate among economists and investors over the durability of U.S. economic expansion. While some indicators continue to point to resilience — notably corporate earnings in some sectors — the revised payroll numbers, rising layoffs and uneven state-level performance highlight the fragility of the recovery and the challenge facing policymakers aiming to balance inflation control with support for growth.