Kamalanomics: Like job slowdowns? ADP reports private-sector job slowdowns -- in the highest-paid jobs

 By Monica Showalter

The economics of the Harris-Biden administration are starting to get ugly out there.

According to PYMNTS.com, a trade journal that tracks money flows:

The labor market continued to cool in August, with job creation among private employers slowing for the fifth consecutive month and wage growth remaining flat.

So said human resources (HR) and payroll solution provider ADP in the August ADP National Employment Report released Thursday (Sept. 5).

“The job market’s downward drift brought us to slower-than-normal hiring after two years of outsized growth,” ADP Chief Economist Nela Richardson said in the report. “The next indicator to watch is wage growth, which is stabilizing after a dramatic post-pandemic slowdown.”

Private sector employment increased by 99,000 jobs in August, down from the revised total of 111,000 added in July, according to a Thursday press release. July’s total was revised down from the previously reported 122,000.

Among the 10 industry sectors tracked by ADP, seven saw job gains during August. The three sectors that saw declines were professional/business services, manufacturing and information, which lost 16,000, 8,000 and 4,000 jobs, respectively, the release said.

Year-over-year pay gains remained flat in August, with those for job-stayers gauged at 4.8% and those for job-changers at 7.3%, per the release.

Like the U.S. Department of Labor, which tracks both government and private-sector jobs in its monthly U.S. Employment Report, ADP tends to revise downward, and probably will with this figure, too.

That's bad, because already the 99,000 new jobs figure is below the expected 140,000 in new jobs created. Now it will probably be revised even lower than that, signalling that the private sector is slowing way down, the way they do during recessions. MarketWatch reports that the Federal Reserve, which has signalled a 25 basis point cut in September, may go lower than that just to try to shake some life into the economy.

There's one reason why this is going on -- the government has gotten just too big under Kamala Harris and Joe Biden. The vast money it requires to keep itself afloat is more than the private sector can support, and the government printing money as a substitute for this missing economy government it needs to live off of is why inflation is showing up. There's too much money chasing too few goods in this ever-shriveling economy, so the money-presses are going.

Add to that that the U.S. is spending most of its money on interest from its past borrowings, which is in the billions now, topping the amount of money spent on defense and this is getting to be a very sad Argentina-style story.

The details are ugly too -- according to ZeroHedge, the three sectors that took the beatings in those numbers - professional and business services (down 16,000 jobs), manufacturing (down 8,000 jobs), and information (down 4,000 jobs) are the highest-paid jobs in the business sector. The lower-paid jobs are hanging on, but the higher-paid jobs are getting scarcer.

I tried to find a definition of professional/business services from ADP, but didn't see anything. I did keep searching, though, hoping it was an industry term and got this definition from Rogers On Business Services, which appears to be a close approximation:

 

The Business Services sector is incredibly varied, and a cornucopia of different businesses fall under the umbrella of Business Services.  Are you unsure whether or not your business is considered a service business? Read on, as we provide a comprehensive list of Business Services businesses. 

Employment Services

Employment services make up most service businesses, driving nearly 40% of the revenue in the category. Employment services break down into three main categories: 

• Placement agencies
• Temporary help services
• Professional Employer Organizations (PEOs)

At a placement agency, the agency works to place employees from their pool of qualified talent in permanent positions with a customer company or client. Temporary help services serve a similar function, but the workers they place are hired temporarily, typically replacing a long-term employee on leave or during periods of high demand.

 

Hear that? Forty percent of this sector seeing fewer jobs is people who hire other people. That is very bad news if I'm right about the definitions here.

Other high-paid parts of this sector, cited by Rogers, includes building services, waste management, security, travel arrangements, and the broad category of services like engineering services, architectural services, IT services, design, land surveying, financial services and law services -- anything a business might need to hire another business for to get its own job done. Subsectors such as law and architecture are very highly paid indeed.

Yet Kamala Harris is proposing to expand the government even more, squeezing this already distressed and shriveling private sector with new monster programs for $200 billion in child care subsidies (NPR's estimate), Hugo Chavez-style promises of millions of units of housing construction, big rental subsidies for the welfare class, $40 billion for local (read: blue) governments to "innovate" which is double what Joe Biden proposed, $25,000 down payment assistance for first-time home buyers, inflated pay for teachers' union members, among other big spending plans in her platform.

In addition, she plans to create shortages by squeezing business harder, with her planned "price-gouging" ban, meaning, businesses will shrivel even more as they cannot pass on their soaring input costs from inflation in the final price of their goods to consumers.

That's a recipe for businesses to 'go Galt.' It happened in Venezuela and I witnessed it when Polar, a big grain and brewery company there, pleaded with Chavez in a full page ad in El Universal in late 2005, for relief from his price controls, or they would have to shut down and leave, which they eventually did.

As the economy shrivels, the public sector expands, particularly with massive newly printed money coming out to pay for it.

We are seeing that happening right now with this nasty report from ADP which has sent stock prices lower, and it will only get exponentially worse if Kamala Harris, god forbid, gets elected president. Even just hearing about her plans is enough to drive the market downward, but fact is, she's in power now, and we are just getting a taste of how bad it's going to get.

https://www.americanthinker.com/blog/2024/09/kamalanomics_like_job_slowdowns_adp_reports_private_sector_job_slowdowns.html