The Bureau of Labor Statistics report on August jobs is anticipated Friday. However, the numbers from the private sector ADP payroll review [Data Here] were released today, and the results are far below what was predicted.
According to the ADP payroll review, businesses hired a total of 374,000 workers, compared to the expectation of 600,000+ from the financial media. The vast majority of jobs gained was in the ‘Service and Hospitality’ sector that added 201,000 jobs.
The total services sector added 329,000 jobs, while the goods-producing sector only gained 45,000 jobs. This result is reflective of an overall drop in consumer spending which has continually been identified in sales data from the past several months.
Consumers are being hit with massive inflation on food, fuel, energy and housing costs. As a result, they have pulled back from spending on durable goods, luxury products and other items now considered ‘non-essential.’
The service and hospitality sector shows job growth from new hires and returning workers as people start to travel, dine in restaurants and engage in other vacation activity. Simultaneously, those same consumers are spending less on retail purchases. This pattern has been very consistent throughout the summer.


When questioned about the incompetence of the Biden administration not seeing the Afghan government collapse, Jen Psaki
The index now stands at 113, a drop from last month when it was 125. The decline in confidence is an outcome of workers and consumers feeling the impact of massive inflation from Joe Biden economic and monetary policies. With gas and food prices climbing rapidly, it should not be a shock to see consumer confidence begin dropping; however, the financial analysts were caught off guard by the unexpected size of the drop.