Despite Job Growth and Wage Increases, Inflation Drives Economic Message Ahead of Midterms
In the push to claim control of the House and Senate from Democrats, Republicans are counting on voter dissatisfaction with soaring inflation to sway midterm election outcomes. President Joe Biden and his party face criticism for inflation rates that outpace historical norms, with little other economic narrative at play.
The US economy added 263,000 jobs in September, lowering the unemployment rate to a notable 3.5%. October’s job gains reached 239,000, according to ADP’s national employment report. Wages also rose, marking a 6.3% increase in September based on Atlanta Fed data, though inflation is outpacing these gains.
September’s US Consumer Price Index showed a 0.4% rise after seasonal adjustment, with a 12-month unadjusted inflation rate of 8.2%—the highest since 1981. Price hikes in energy and food remain especially sharp, making inflation an unavoidable issue as Americans refuel or shop, shaping voter sentiment.