News is getting worse for the Democrats that their fear porn and their public policies are not helping anyone. All indication is that American voters are going to be poised to take revenge at the ballot box in the upcoming mid-term elections.
Why It Matters: Democrats will pay a heavy toll for prolonging the pain and frustration from the COVID restrictions of the pandemic. Now economic data proves that Joe Biden did nothing to keep his campaign promises.
Here is what is happening:
The US private sector lost hundreds of thousands of jobs in January, according to Wednesday’s ADP Payroll Services’ Employment Report. COVID’s Omicron variant is blamed for the loss. However, the oppressive and draconian reactions by governments, federal, state, and local, as well as forced private-sector mandates to ‘stop’ the virus, are the most likely reasons for the Democrat disaster.
“The number represents a dramatic reversal from December, when ADP reported a gain of 807,000 jobs,” the reported read,
In contrast, in January, small businesses lost 144,000 jobs, including 106,000 in businesses with between one and 19 employees and 38,000 at companies with between 20 and 49 employees.
Midsized businesses with between 50 and 499 employees subtracted 59,000 jobs in January, according to the ADP National Employment Report released Wednesday.
Large businesses lost 98,000 jobs, including 4,000 at companies with between 500 and 999 employees and 94,000 at corporations with 1,000 employees or more.
The service-providing sector lost 274,000 jobs, including 154,000 in leisure and hospitality, 3,000 in professional and business services like accounting and auditing, and 9,000 in financial activities such as banking. The goods-producing sector lost 27,000 jobs, including 21,000 in manufacturing and 10,000 in construction. Franchises gained 1,600 jobs in January.
The loss of 301,000 private-sector positions came as a surprise to economists who had predicted businesses had added 207,000 jobs. It was also the first decline in the ADP report since December 2020.
The ADP report relies on private payrolls, unlike the government’s jobs report that counts all workers. Also of note: ADP counts workers on a company’s payroll, irrespective of whether they were out sick.
That Bureau of Labor Statistics’ report is due Friday morning, with economists predicting 150,000 jobs added, according to Refinitiv. But not all economists are so optimistic. Goldman Sachs (GS) expects a decline of 250,000 jobs in Friday’s report, for example.
“The details of the ADP employment report indicate a large and likely temporary drag from Omicron on January employment,” economists at the bank said.
The drop in Wednesday’s report was also a sharp slowdown from the December report, which showed a whopping 807,000 jobs added as the Omicron variant of Covid-19 wasn’t as widespread at the time.
But in January, coronavirus cases spiked. That affected business led to worker absenteeism and temporary school closures.
This is the most recent indication that Democrat Joe Biden has failed at his role as POTUS and will likely not be able to recover his popularity.
CNBC reported in mid-January, before this latest humiliation on Biden:
Messy job reports and unreliable labor forecasts take a toll on Biden’s first year
To say that the U.S. Labor Department’s jobs reports are important would be to undersell what many observers consider something of a critical economic barometer.
That data, which includes the official measure of national unemployment and monthly job creation, shapes economic forecasts. But it also serves as a potent political measure, an instant report card on the success or failure of a U.S. president’s economic plan. It can sway consumer attitudes in the short term and influence voters in election years.
An assumption that the government provides accurate numbers underpins the emphasis on the monthly update.
But now the lingering Covid-19 pandemic makes the job of collecting reliable numbers more difficult — and less reflective of the final count after revisions than in pre-pandemic times.
That means President Biden, who will mark a year in office Jan. 20, paid a political price for what were seen as “missed expectations” that appear to have helped to sour voters on his handling of the economy as the Democrats try to hold control of Congress in November’s midterm elections.