WSJ What’s News (PM Edition)

Episode: Revised Job Data Show U.S. Labor Market Weaker Than Previously Reported

Date: September 9, 2025
Host: Alex Osola
Podcast: The Wall Street Journal – What’s News

Overview

This episode of WSJ’s “What’s News” explores stunning new revisions to U.S. jobs data that reveal the labor market has been much weaker than previously thought, as well as how rising inflation is impacting household incomes and deepening inequality. The show also covers breaking geopolitical tensions around an Israeli strike on Hamas leadership in Qatar, the latest deadly attack in Ukraine, and Apple’s unveiling of the thinner iPhone Air.

Key Discussion Points & Insights

1. U.S. Job Growth Revisions: Market Implications

Timestamps: [00:56] – [03:27]

• Major Data Revision:
  The Bureau of Labor Statistics (BLS) slashed previous estimates, finding 911,000 fewer jobs were created in the 12 months ending March 2025—cutting official figures by more than half.

  • Key Insight:
    “It’s very big. Last year was quite big, too… still significant downward revision to job growth.” — Justin Lehart, [01:56]

• Why Such a Large Revision?

  • Pandemic-related distortions still disrupt accurate job market measurements.
  • Discrepancies between employer reports to BLS vs. tax authorities.
  • Problems with non-responses and capturing the high churn (businesses opening/closing).
    • Quote:
      “A lot of what is happening seems to be distortions that we’re still dealing with surrounding the pandemic.” — Justin Lehart, [02:14]

• Implications for the Fed & Economy:

  • While the data is old, it points to a weaker labor market and may lead the Fed to become more dovish.
  • “We do know that the job market has deteriorated in the last several months… simply weaker now than it was.” — Justin Lehart, [03:04]

• Political Fallout:

  • The White House is preparing a report criticizing the BLS, a highly unusual move targeting typically non-partisan data collection.

2. Inflation’s Impact on Household Incomes

Timestamps: [03:54] – [06:42]

• Income Stagnation:
  New Census Bureau data reveal that after adjusting for inflation, median household income in 2024 ($83,730) was essentially unchanged from 2023—erasing wage gains.

  • Market Reaction:
    Despite labor market concerns, stocks closed at record highs boosted by rate-cut optimism.

• Who Was Hit Hardest?

  • High-Income Households: Saw real income growth.
  • Median & Low-Income Households: Stagnation or decline.
  • Racial Gaps: Black Americans’ incomes fell, while Hispanic and Asian households rose and white incomes stayed flat—widening racial income disparities.
  • Gender Gap:
    “Wage growth for men was 3.7% in 2024. But income growth for women was basically statistically insignificant.” — Konrad Futseer, [05:40]

• Broader Trend:

  • Since 2019, real median income has not risen––a 5-year period of stagnation as inflation wiped out gains.
  • “Basically it’s an economy where a lot of people didn’t really get ahead financially because of inflation. And it helps us explain why people feel bad about the economy.” — Konrad Futseer, [05:48; 06:18]

3. Israeli Attack on Hamas Leadership in Qatar

Timestamps: [07:31] – [11:21]

• The Incident:

  • Israel’s air force struck Hamas’s senior leadership in Doha, Qatar—a rare extension of the conflict beyond Gaza, hitting a U.S. ally and key intermediary.
  • Qatar’s government condemned the attack, with casualties among Hamas and Qatari security forces.

• U.S. Response:

  • The U.S. was informed before the strike; President Trump notified Qatari officials and spoke to both leaders post-attack. The White House signaled it wants hostages released and the war ended.

• Diplomatic Fallout:

  • Mediator Reaction:
    Regional mediators believe the strike destroys prospects for ongoing peace talks.
    • Quote:
      “They just think that this is unfortunately the end of diplomacy road for them.” — Summer Said, [10:19]
    • The perception is that no nation can host Hamas for talks without risk, undermining any mediation process.
    • Trust in U.S. & Israel Damaged:
      “For them to have this kind of attack as they’re negotiating… is a quite strong hit to the credibility of either the US or Israel.” — Summer Said, [09:41]

4. Other Headlines

Timestamps: [11:21] – [12:40]

• Ukraine:
  A Russian glide bomb struck civilians collecting pensions in eastern Ukraine, killing at least 23—one of the deadliest attacks of the war. The strike comes amid stalled negotiations and increased civilian targeting since a Trump–Putin meeting.

• Apple Product Launch:
  Apple announced its thin iPhone Air, starting at $999 and replacing the Plus line. The move is seen as strategic amid rising tariffs and a lag in new AI features.

  • Industry Note:
    Apple is using new features and models to justify price hikes, sidestepping direct blame on Trump’s tariffs:
    “Touting new models and phone capabilities as a reason for price increases will allow Apple to avoid blaming President Trump’s tariffs…” — Alex Osola, [12:16]

Notable Quotes & Memorable Moments

1. On Revised Jobs Data

   “It’s very big. And last year was quite big, too… still significant downward revision to job growth.”
   — Justin Lehart, [01:56]

2. On Ongoing Data Distortions

   “A lot of what is happening seems to be distortions that we’re still dealing with surrounding the pandemic.”
   — Justin Lehart, [02:14]

3. On Income Inequality

   “Black Americans saw their income go down last year even as Hispanic and Asian incomes rose and white incomes essentially stayed flat. So you do see this widening racial income gap.”
   — Konrad Futseer, [05:05]

4. On Stagnant Incomes

   “If we compare 2019 to 2024, the median real income adjusted for inflation basically didn’t change.”
   — Konrad Futseer, [05:48]

5. On Impact to Peace Talks

   “Which other country would feel more comfortable having Hamas leaders showing up and having talks if they know that the possibility of an attack is right there and it’s real?”
   — Summer Said, [10:44]

Summary Timeline (Timestamps)

• [00:56] – U.S. job revisions: weaker-than-reported job creation
• [01:56] – Expert view on scale & source of revisions
• [03:54] – Stock market, inflation, and wage stagnation explained
• [04:49] – Which Americans suffered most from inflation; income & racial gaps
• [07:31] – Israel strikes Hamas in Qatar; wider regional and diplomatic fallout
• [11:21] – Russian strike on Ukrainian civilians; Apple’s iPhone Air launch

Tone & Language

The episode is factual, urgent, and analytic—refreshingly candid about flaws in economic data, growing inequality, and the fragility of both U.S. domestic confidence and global diplomatic efforts.

This summary provides a clear breakdown of all key reporting, analysis, and commentary featured in the episode, with quoted highlights and timestamp references for further exploration.