U.S. private sector payroll increased by just 89,000 jobs in September, well below the 150,000 expected according to the ADP National Employment Report. The lackluster report signals the weakest U.S. labor market since January of 2021. Additionally, wage growth slowed to 5.9 percent – the 12th consecutive month of decline.
The lower-than-expected job numbers come as bad news for President Joe Biden as he ramps up his 2024 re-election campaign. With weakening in the labor market likely to continue as a result of the Federal Reserve’s interest rate hikes, the Biden campaign’s decision to lean into ‘Bidenomics‘ may backfire. Employment sectors that make up core parts of the Democrat Party’s base – including trade, transportation, utilities, and manufacturing – all saw significant losses according to the report. Growth in service sector made up a bulk of the job gains.
ADP’s employment report has a mixed history of successfully forecasting job gains as reported by the U.S. government’s Bureau of Labor Statistics (BLS). The BLS will release their official non-farm payroll numbers for September this Friday. Economists expect the government agency to report 170,000 were added last month, down from 187,000 in August.