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<p>Nearly 1M 'phantom jobs' vanish: 3 ways to protect your income</p>
<p>Yahia Barakah September 11, 2025 at 1:35 AM</p>
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<p>The U.S. job market is worse than we thought. Here's why it matters. (The Good Brigade via Getty Images)</p>
<p>A new report from the Bureau of Labor Statistics (BLS) just revealed that 911,000 jobs previously reported between March 2024 and March 2025 never actually materialized. This regular annual review of previous data typically delivers adjustments to previous data as the agency cross-checks its monthly business surveys against comprehensive unemployment insurance tax records from nearly every employer in the U.S.</p>
<p>The 911,000-job overcount is the largest revision since records began in 2000. This adds to worsening job market conditions in recent months, with August's employment data showing that employers added just 22,000 jobs last month — the weakest August hiring since 2010. The number of people who've been jobless for six months or longer increased by 385,000 compared to last year.</p>
<p>This economic data is more than just numbers as it can impact your everyday life and finances in various ways. Let's take a closer look at why they matter and what they mean for you.</p>
<p>Why employment numbers matter</p>
<p>Jobs reports serve as one of the economy's report cards. When companies hire consistently, it means they're confident about future growth. When hiring slows or stops, trouble often follows — think recessions, business closures and widespread unemployment.</p>
<p>These numbers drive major economic decisions, especially at the Federal Reserve. Congress gave the Fed two main jobs: keep people employed and keep inflation under control. When job growth stalls, the Fed typically cuts interest rates to encourage more hiring.</p>
<p>But the Fed faces a tricky situation right now. Cutting rates to boost hiring could make inflation worse by making borrowing cheaper and increasing spending. With inflation running hot above the Fed's 2% target, rate cuts could add fuel to the fire.</p>
<p>How the jobs data gets collected and revised</p>
<p>The monthly jobs numbers you hear about aren't set in stone. They go through multiple rounds of revisions as the Bureau of Labor Statistics gets more complete information. Here's how the process works:</p>
<p>Monthly surveys. The BLS surveys about 60,000 businesses each month, but only 43% respond by the deadline. They use statistical models to estimate what non-responders might report.</p>
<p>Regular revisions. Numbers get twice more as additional responses come in over the following months.</p>
<p>Annual benchmark. Once a year, the BLS checks its estimates against unemployment insurance tax records from 11 million workplaces — nearly every employer in the U.S.. This comprehensive review often reveals some gaps.</p>
<p>In simple terms, the monthly approach gives faster information, but the annual review provides the complete picture.</p>
<p>Learn more: The Fed rate cut: 5 ways lower rates will affect your wallet</p>
<p>What a jobs slowdown means for you</p>
<p>A weakening labor market can influence your job, everyday expenses and overall finances in several ways.</p>
<p>1. It could be harder to find a job (or get a raise)</p>
<p>Weak hiring could mean fewer opportunities for you to switch jobs or negotiate a higher salary or better employment terms. The number of people who've been out of work for six months climbed by 385,000 over the past year — a sign that finding work is taking longer than usual.</p>
<p>2. Gas and groceries cost more</p>
<p>Rising inflation hits your wallet directly as higher prices at the grocery store, gas station and everywhere else you spend money. The most recent inflation reading revealed a 0.3% increase in prices in June alone, pushing annual inflation to 2.7% — well above the Fed's 2% target.</p>
<p>Food costs have been particularly painful for the average American household, rising 3.0% from last year, with eggs increasing a whopping 27.3%, while rent and housing climbed 3.8% annually.</p>
<p>3. Your savings will earn less interest</p>
<p>Banks typically lower the rates they pay to savers when the Fed reduces its key rate, meaning you'll earn less interest on your money over time. Those high-yield savings accounts (HYSAs) and certificates of deposit (CDs) paying out 4% APY aren't likely to last long after a Fed cut.</p>
<p>Learn more: How the Fed rate affects every type of bank account</p>
<p>How to prepare for the months ahead</p>
<p>Making these three key money moves right now can help you stay ahead of whatever comes next.</p>
<p>1. Build a strong emergency fund</p>
<p>When employment slows, an accessible emergency fund is an essential safety net. Financial experts typically recommend three to six months of expenses, but if you're worried about losing your job, you might want eight to 12 months in a flexible account — like a high-yield savings account earning 10 times that of your everyday account — for extra peace of mind. It could buy you time to find the best fit rather than take the first job offer that comes along.</p>
<p>Learn more: How to build an emergency fund</p>
<p>2. Lock in today's highest CD rates</p>
<p>While a Fed rate cut is expected this month, you can get ahead of lower yields by locking in today's highest rates on certificates of deposits. Right now, you can find CDs offering rates of 4% APY or higher on terms of six months or longer.</p>
<p>Or consider laddering your CDs with different maturity dates so you're not locked into one rate for too long. For example, you might split your savings between six-month, nine-month and 12-month CDs. This strategy gives you access to some money every few months while capturing today's higher rates before they drop.</p>
<p>Learn more: What to do when your CD matures</p>
<p>3. Get ahead of higher prices</p>
<p>Inflation may continue climbing as businesses pass along to consumers higher costs resulting from tariffs and other economic pressures. It means your money is likely to lose some of its value every month it's earning less than the inflation rate.</p>
<p>Take time to audit your spending and find where costs are quietly climbing. Start with your monthly expenses, like phone plans, streaming services and auto insurance, calling each company to ask for lower rates. If you don't get the answer you want, shop around for cheaper alternatives.</p>
<p>Consider putting some of your savings in diversified stock market funds, which have historically outpaced inflation over the long term. Work with a financial advisor to determine what assets make the most sense for your budget and financial goals.</p>
<p>Learn more: How I started investing with just $100 — and why you shouldn't wait</p>
<p>More stories about the Fed and your personal finance -</p>
<p>How the Federal Reserve affects mortgage rates</p>
<p>How to prepare for a Fed rate cut (and 4 money moves you should avoid)</p>
<p>Top banking mistakes that could be costing you money</p>
<p>8 money lessons from the 2008 Great Recession that apply today</p>
<p>5 smart moves after you've hit $10,000 in savings</p>
<p>Editorial disclaimer: Information on this page is for educational purposes and not investment advice or a recommendation to buy any specific asset or adopt any particular investment strategy. Independently research products and strategies before making any investment decision.</p>
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