The number of employees in the private sector in the USA increased by 374 thousand in August. However, the market consensus was still almost 300,000 higher. The spread of the delta variant of coronavirus in the USA may be worse than expected.
Although the August result is slightly better than the July one, it is still a disappointment for the markets. The market consensus expected an increase in new jobs in the private sector of around 625 thousand. In July, 326,000 more jobs were added.
The largest increase in employment was recorded in the accommodation services and leisure activities sector, which accounted for almost two-thirds of the August result. Less than 60,000 jobs were added in education and health care. With 45,000 followed by the production of goods, employment in construction rose by 30,000 people.
According to experts, the spread of the delta coronavirus variant throughout the United States is behind the worse-than-expected August numbers. This increases uncertainty about future developments and worsens the outlook for the US economy to recover. Thus, private companies and entrepreneurs are not motivated to recruit new workers so quickly.
