WASHINGTON (AP) — The U.S. economy added 818,000 fewer new jobs from April 2023 to March of this year than originally reported, the government said Wednesday. The revised figure is further evidence that the labor market is steadily slowing and is likely to reinforce the Federal Reserve’s plan to begin cutting interest rates soon.

The Labor Department estimated that job growth averaged 174,000 per month in the year through March – a decline of 68,000 per month from the 242,000 originally reported. The revisions released Wednesday were preliminary; final numbers are due to be released in February next year.

The downward revision follows a much worse-than-expected July jobs report, which had many economists suspecting the Fed waited too long before starting to cut interest rates to support the economy. The unemployment rate rose for the fourth month in a row to a still-low 4.3%, and employers added just 114,000 jobs.

The Fed raised its benchmark interest rate 11 times in 2022 and 2023 to combat inflation, which hit a four-decade high more than two years ago. Year-on-year inflation has fallen sharply since then – from 9.1% in June 2022 to 2.9%, clearing the way for the Fed to begin cutting rates at its next meeting in mid-September.

The revised hiring estimates released on Wednesday are intended to better take into account companies that are starting up or going out of business.

“This does not challenge the notion that we are still in an expansion phase, but it does signal that we should expect more subdued monthly job growth and will put additional pressure on the Fed to cut interest rates,” said Robert Frick, economist at Navy Federal Credit Union.

According to the revisions, 358,000 new jobs were created in the professional and business services sector – a broad category that also includes managers and technical workers – in the 12 months to March. Employers in the leisure and hospitality sectors – including hotels and restaurants – created 150,000 fewer than initially reported.