Non-farm figures far below expectations for 733,000 new jobs
The US economy added 235,000 jobs in August, significantly lowering economists’ forecasts. The impact of delta variants may be disrupting employment plans amidst the labor shortage.
Non-farm payroll figures released by the Bureau of Labor Statistics showed a sharp fall from the 1.1m employment created in July.
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The numbers for August are well below expectations for a new job of 733,000.
The unemployment rate, which was about 5.4% in July, fell to 5.2% last month.
US Non -Farm’s payroll increased by 235K in August.
The unemployment rate fell to 5.2%, down to 8.4 million. It’s down considerably from the highs in February and April 2020, but surpasses pre-coronavirus pandemic levels (3.5%, 5.7 million). https://t.co/vaesr8qwnb
– Linda Yue (@lindayueh) September 3, 2021
The unfortunate figures come a few days before the federal unemployment rate tightens expire. They were initially in place to support those struggling through the economic damage caused by the pandemic.
Republican members have previously suggested that the measure would eliminate incentives for people to return to work, which has led to some conservative states ending their profits.
Robert Alster, CIO of Close Brothers Asset Management, commented: “In the eyes of the market, US labor data is a double-edged sword. The incredible weakening seen in labour activities in August shows that the delta variant has had a very damaging effect. And that brings growth and confidence. But on the contrary, as seen in non-farm salaries in June and July, strong labor data pushes the Fed into a more hawkish approach to monetary policy, Asset purchases will increase as soon as prices rise in November and 2022.”
“This carries the risk of suppressing our growth before we can hold back our growth. This could be the push Democrats need to get Powell to take office. 18 months of uncertainty After that, stability is the order of the day. We must expect a steady pace of recovery, not a volatile boom or bust that will surprise consumers, investors and policymakers.”
