The U.S. job market saw hiring slow to 235,000 jobs in August, a sharp drop off after two strong months with the Delta variant of the coronavirus to blame.
Still, President Joe Biden said it represented good news.
'What we're seeing is an economic recovery that is durable and strong. The Biden plan is working, we're getting results,' he said at the White House Friday morning.
The unemployment rate dropped to 5.2%, the Labor Department reported Friday, but the predictions for the job market failed to meet expectations by a significant margin.
'There's no question that the Delta variant is why today's jobs report wasn't stronger,' Biden said.
Economists surveyed by Dow Jones had been looking for 720,000 new hires.
Biden addressed the job numbers in a speech at the White House on Friday before heading to New Orleans to view the damage from Hurricane Ida.
President Joe Biden boasted that the economic recovery was 'durable and strong,' despite the jobs report falling below expectations
Biden used much of the speech to press Congress to pass his $3.5 trillion spending package, which moderate Democratic Sen. Joe Manchin told party members Wednesday they should take a 'pause' on, citing inflation concerns.
The Democrats need Manchin to vote yes to get the giant bill across the line using the process of reconciliation to bypass the Senate filibuster.
Biden argued the package was pivotal to the nation's longterm economic recovery, while talking about how the U.S. should pay for it: by taxing corporations.
'The fact of the matter is, it's about time they being to pay their fair share,' Biden said.
He cited how 55 of America's largest corporations paid zero in federal taxes.
'The irony of ironies is during the recession in the pandemic - you've heard me say this before, I apologize for repeating it - while the vast majority of Americans are struggling to hang on, the number of billionaires in America actually grew,' Biden said laughing.
'I want to hold here for just a second,' he continued. 'There have been so many records the stock market has hit under my presidency. Imagine if the other guy was here? "We're doing great, it's wonderful, the stock market is surging, it's gone up higher under me than anybody." But that doesn't mean that it's the best for the economy,' Biden said mocking former President Donald Trump.
He added that the 'stock market has hit 40 record highs just this year.'
Biden then returned to talking about the $3.5 trillion plan, noting how Republicans aren't supporting it and corporate lobbyists are seeking to derail it.
'Somebody's got to pay,' he said.
He said while lobbying efforts have been successful in the past, 'I don't think it's going to work with me.'
President Joe Biden is captured walking to the podium in the State Dining Room Friday to discuss the underwhelming job numbers
'To those big corporations that don't want things to change, my message it this: It's time for working families, folks who built this country, to have their taxes cut,' Biden said. 'And those corporate interests doing everything they can to find allies in Congress to keep that from happening, let me as president be perfectly clear: We're going to take them on, we're going to pass these measures.'
Biden argued the rich would still live comfortably.
'They are still going to have three homes and four homes if they want,' he said.
'But just pay a fair share,' he urged.
The president tied it back to the August jobs report, saying that Congress needed to 'finish the job, come through for the American people to ensure the economy continues to gain strength and stability as we move forward.'
The August employment report was expected to show another strong month for hiring, but Wall Street was also watching it for signs of how the Delta variant of the coronavirus has effected the economy.
The coronavirus has been a wild card for economists and the Delta variant has caused the case rate to soar around the country.
Many localities have re-issued mask mandates and other mitigation measures. Consumer spending and confidence have dropped as the case number rise. Dining numbers were down for August as were travel numbers, a notable stat during the summer vacation season.
Other indicators of life returning to normal have taken steps backward: many businesses have delayed returning to the offices while concert tours have been cut.
Republican Sen. Ted Cruz said '"Jimmy Carter 2.0" is an understatement,' about Biden, citing the 'disastrous jobs report, missing expectations by half a million'
Tennessee Republican Sen. Bill Hagerty tweeted about the 'disappointing jobs miss' after Biden's speech, indicating he was not supportive of Biden's $3.5 trillion spending bill
The August job number was the worst since January and it was also down significantly from July, when the economy added 943,000 jobs for an unemployment rate of 5.4%.
'Disappointing jobs miss and yet President Biden and the Dems remain hell-bent on spending trillions of dollars more and increasing hardworking Americans' dependency on the federal government,' tweeted Tennessee Republican Sen. Bill Hagerty after Biden's speech.
Sen. Ted Cruz, a Texas Republican, pointed to the 'disastrous jobs report,' noting that it was 'missing expectations by half a million' saying '"Jimmy Carter 2.0" is an understatement' about Biden.
Florida Republican Rep. Greg Steube said, 'Biden is tanking the economy.'
The Federal Reserve is closely watching these numbers for signs of how COVID impacted hiring and activity as it considers when to start easing some of the extraordinary measures it put into place during the pandemic.
Federal Reserve Chair Jerome Powell, speaking at the central bank's Jackson Hole Symposium last week, said Fed officials agreed they should begin to taper their $120 billion-a-month bond buying program this year.
However, he gave the caveat that he'd like to see more progress in the labor market before such a move was made.
So officials will be watching this economic report and the next ahead of the Fed’s Sept. 22 meeting.
Florida Republican Rep. Greg Steube said, 'Biden is tanking the economy,' in a Friday afternoon tweet
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