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.