A post-COVID paradox: some jobs are in high demand, but the average job creation rate is weak

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Employment in the US business sector continued to grow less than expected in August. New figures from payslip processor ADP indicate that many companies continue to have difficulties in finding staff as the economy picks up again and the demand for additional employees increases.

According to ADP, only 374,000 new jobs were created in business in the United States last month. Economists expected an average of 625,000 new jobs. The July figure was also revised downwards to 326,000 new jobs. A further 330,000 jobs were previously reported here.

According to experts, the recovery of the job market has been damaged by the further spread of the Delta variant of the coronavirus.

“Job growth remains strong, but is far from the pace of recent months,” explains Mark Zandi, chief economist of Moody’s Analytics.

The combined increase in July and August was the slowest since the beginning of the year, according to ADP. ADP’s data anticipates the monthly jobs report published by the US government on Friday. This study also takes into account developments in the public sector. Economists expect an average of 652,000 new jobs last month. The unemployment rate is expected to fall to 5.2% as the employment rate increases.

About the author

Nicholas de Kramer

Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at [email protected]

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