The Labor Department delivered the August jobs report early this morning, Friday September 3rd. The report revealed that the U.S. economy added back jobs at a far slower pace in August following an early-summer jump in employment, as an initial wave of reopening hiring waned and concerns over the Delta COVID-19 variant increased.
In August, nonfarm payroll growth increased by just 235,000, a disappointment from the expected 720,000. The unemployment rate fell from 5.4% to 5.2%, which was in line with estimates.
“The labor market recovery hit the brakes this month with a dramatic showdown in all industries,” said Daniel Zhao, senior economist at jobs site Glassdoor. “Ultimately, the Delta variant wave is a harsh reminder that the pandemic is still in the driver’s seat, and it now controls our economic future.”
The leisure and hospitality jobs, which had been the primary driver of overall gains at 350,000 per month for the past six months, stalled in August as the unemployment rate in the industry ticked higher to 9.1%.
Instead, professional and business services led with 74,000 new positions.
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