Delta slows US labor market recovery in August but effect is much smaller than first wave - Jason Furman and Willie Powell

September 3, 2021. Opinion: "US labor markets continued to make progress in August, but the pace of the progress was slower than in recent months, and the state of the labor market remains uncertain because of conflicting signals from different measures. The generally more reliable employer survey showed that the US economy added 235,000 jobs in August, considerably slower than the 1,008,000 average pace in June and July and well below the 487,000 average pace in the first five months of the year. Job growth at this pace continued to narrow the jobs shortfall but still leaves the economy 7.2 million jobs short of pre-pandemic projections. At the same time, the unemployment rate fell by 0.2 percentage point, the same pace of reduction as in the first seven months of the year, while labor force participation was flat, and the household survey reported a sizeable increase in employment." Read Via PIIE

HKS Author - Jason Furman and Willie Powell