U.S. companies slowed hiring last month far more than economists predicted, according to data released in the ADP National Employment Report on Wednesday.
Economists surveyed by Refinitiv predicted that September hiring would slow, but still total about 153,000. The estimate was off by more than 60,000 as the real number came in at 89,000, according to the employment report. September’s numbers are a drop from 180,000 new hires made the month before in August, according to Fox Business.
September hires mark the weakest month for hiring since January 2021. The slow performance comes as interest rates remain elevated as the Federal Reserve works to curb inflation.
“We are seeing a steepening decline in jobs this month,” said ADP chief economist Nela Richardson, according to Fox Business “Additionally, we are seeing a steady decline in wages in the past 12 months.”
While the slow hiring month may be a welcome signal to the Federal Reserve, the slowing economy is unlikely to aid the White House’s attempts to sell its economic agenda to voters as President Joe Biden heads toward a reelection battle in 2024. The White House has attempted to revive Biden’s poor standing with voters on the economy by pitching “Bidenomics,” a tagline for Biden’s economic agenda. The president continues to be deep underwater with voters on the issue, however.
Two recent polls have showed the Democratic Party lagging far behind the Republican Party on who is trusted more by voters to handle economic issues. In each poll, the Republican Party enjoyed its largest lead on the issue in decades.
The results, from a Gallup poll taken from September 1-23, showed Republicans with a 53% to 39% edge over Democrats on the issue, as well as a 44% to 36% edge on the issue that each voter considers their “most important.” The GOP lead on the economy was the largest since 1991.
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A poll from NBC News released last week showed a similar dynamic. The Republican Party is trusted more by voters than Democrats to handle the economy by a 49% to 28% margin. Again, the poll showed the largest edge the GOP has had on the issue since 1991.
The president’s flagging performance on the economy has motivated some of his allies to push him to drop the “Bidenomics” message, arguing that attaching Biden’s name to an unpopular issue is not aiding Biden’s stock among voters.
“At this point, Bidenomics doesn’t really have strong answers to people’s biggest worries,” said Progressive Policy Institute President Will Marshall. “There ought to be a lot of thinking in the White House now about changes in the way they present their case for the economic good that this administration has done.”