Jobs Report: COVID Slows US Economic Recovery

🚨 It’s that time of month again: JOBS REPORT TIME. 🚨

The total unemployment rate fell 0.2% in August to 5.2%. Fears of COVID’s delta variant inhibited this month’s gains. 👎

The total number of unemployed Americans fell to 8.4 million — jobless numbers remain above pre-pandemic levels, but below March/April 2020 highs. Hey, that’s some good news. 😅

Total nonfarm employment rose by 235,000 in August with monthly job growth averaging 586,000. That figure is still short of analysts’ estimates of 720,000 new jobs in August (compared to 1.1 million jobs added in June and 962,000 in July).

Slower hiring persists in sectors involving in-person interaction, but hiring in warehousing, manufacturing, and finance came in strong this month. 💪

The main cause of this month’s mid-recovery hiccup? According to economist Bernard Baumohl of the Economic Outlook Group, COVID’s delta prompted “The economy [to lose] some steam. Consumers are much more cautious about spending. A lot of businesses recognize this and are also willing to pull back on hiring.”

Stocks closed the day mixed. The jobs report could put a damper on the Fed’s September taper plans.

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