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.
