(BLS) Nonfarm payroll employment increased by 235,000 in August, less than the expected jump of 750,000, with the spread of Delta variant weighing on hiring.
The unemployment rate only fell marginally by 0.2% to 5.2%.
Employment in hospitality and leisure, which was booming, was flat as challenges of hiring were encountered amid Delta variant spread. Payrolls in restaurants and bars fell by 42,000.
The labor force participation rate remained unchanged at 61.7%.
5.6 million individuals were unable to work due to the pandemic, an increase from 5.2 million in July.
The job data means that US payrolls are now 5.3 million below those of the pre-pandemic levels.
The smaller increase in payrolls complicates the anticipated bond tapering by the Fed, which has insisted on relying on employment in future policy.
Following the disappointing job additions, analysts are downgrading third-quarter growth, with Sal Guatieri of BMO Capital Markets expecting GDP to grow by only 6%.
SPY is down -0.084%, DXY is down -0.15%.
