U.S. Payroll Growth Slowed in August
U.S. payrolls grew by 235,000 and the jobless rate fell to 5.2% in August, the Labor Department said Friday. Hiring slowed sharply as the Delta variant affected employer and worker confidence.
The rising number of Covid-19 cases tied to the Delta variant could result in slower job growth for two reasons, economists say. Businesses, particularly in services sectors requiring in-person contact, could hold off on hiring amid heightened pandemic uncertainty. Jobless individuals who are fearful of Covid-19 health risks might also be slower to return to the labor market until the virus abates.
The Delta variant appears to be denting consumer spending growth and confidence. The number of diners seated at restaurants was down 9% in the week ending Sept. 2 compared with the same week in 2019, before the pandemic, for instance, according to reservations site OpenTable. The volume of people eating out has gradually slowed from earlier this summer.
Friday’s job report offers more evidence on the extent to which the variant is affecting the labor-market recovery. Some indicators point to a slowing recovery, while other data signal labor-market resilience.
https://www.msn.com/en-us/money/economy/us-payroll-growth-slowed-in-august/ar-AAO3rU2