The sharp slowdown in employment in the US raises concerns about the impact of the Delta variant on the recovery

The delta variant of the coronavirus stands as a threat to the economic recovery in the United States. The labor market added only 235,000 jobs in August, according to data released this Friday by the Labor Department. The advance is much lower than the records of June and July, where the figures were close to one million new jobs. Despite the slowdown, the unemployment rate fell slightly to 5.2%, the lowest level since the start of the pandemic. At half-day this Friday, the Dow Jones fell, but remained at highs. The steps backwards due to the increase in deaths, new cases and hospitalizations due to the covid have had no impact on Wall Street, which last month registered its seventh consecutive monthly rise.

The sectors of the economy most affected in August were those that required face-to-face interaction with the public.

Hiring in hotels and restaurants, which experienced a boost during the summer reinforced by the lifting of restrictions, did not grow at all in August.

Americans are traveling less and reducing their dining out compared to June and July, when nearly 400,000 new jobs were created each month.

The construction or education sectors also lost employees.

Economists hope that the reopening of schools will allow some parents to return to the workforce.

More information

• The pandemic widens the economic gap between the United States and Europe

• The United States economy grows 1.6% in the second quarter and recovers the pre-pandemic level

Uncertainty over the delta variant has prompted some local governments and companies to reinstate mask-wearing mandates or require employees to be vaccinated if they want to keep their jobs. Also, more and more companies have postponed the return to the offices in person. On the other hand, there are no business closures or new capacity restrictions, as happened at the worst moment of the pandemic.

Employment has plenty of room to grow: The number of job vacancies remains at record levels with 10.1 million jobs available, according to figures released in August. Some company bosses have blamed extra federal unemployment benefits for the difficulty they are having in filling the available places. About 25 of the 50 states, the majority ruled by Republicans, eliminated the $ 300 a week (about 255 euros) aid for unemployed citizens approved during the pandemic. Difficulty recruiting employees has boosted wages, which rose 4.3% in August compared to the previous year.

The sectors that are currently advancing most strongly are manufacturers and shipping and warehousing companies. Walmart, for example, announced this week that it will hire 20,000 people to expand its supply chain and online shopping operations, and Amazon is looking to fill 40,000 positions, mainly in the technology industry and hourly jobs.