Economists estimate employers hired 720,000 last month, but they are watching to see if the latest pandemic surge weighed on hiring
Economists surveyed by The Wall Street Journal estimate the Labor Department on Friday will report the U.S. economy added a seasonally adjusted 720,000 jobs in August. Such a figure would be historically strong but mark a slowdown from average payroll growth of about 940,000 in June and July.
They also forecast that the unemployment rate fell to 5.2% in August from 5.4% in July.
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.
