Please ensure Javascript is enabled for purposes of website accessibility
US Hiring Slows to Just 235,000 Jobs After 2 Strong Months
gvw_ap_news
By Associated Press
Published 4 years ago on
September 3, 2021

Share

WASHINGTON — America’s employers added just 235,000 jobs in August, a surprisingly weak gain after two months of robust hiring at a time when the delta variant’s spread has discouraged some people from flying, shopping and eating out.

The August job gains the government reported Friday fell far short of the big gains in June and July of roughly 1 million a month. Those increases were revised higher by a combined 134,000. The gains in June and July followed widespread vaccinations that allowed the economy to fully reopen from pandemic restrictions.

Still, the number of job openings remains at record levels, and hiring is expected to stay solid in the coming months. And even though hiring was relatively tepid in August, the unemployment rate dropped to 5.2% from 5.4% in July.

Reports Show Delta Variant Had Negative Impact on Job Growth

Friday’s report provided numerous signs that the delta variant had a depressive effect on job growth last month. The sectors of the economy where hiring was weakest were mainly those that require face-to-face contact with the public.

Hiring in a category that includes restaurants, bars and hotels, for example, sank to zero after those sectors had added roughly 400,000 jobs in both June and July. With COVID cases having spiked this summer, Americans have been buying fewer plane tickets and reducing hotel stays. Restaurant dining, after having fully recovered in late June, has declined to about 10% below pre-pandemic levels.

The slowdowns in travel and dining out meant that employers had less reason to add jobs in those areas. And many job hunters were likely reluctant to take public-facing jobs as the delta variant has spread.

Health care and government employers also cut jobs in August. Construction companies, which have struggled to find workers, lost 3,000 jobs despite strong demand for new homes.

Government employers shed 8,000 jobs, mostly because of a sharp declines in local education hiring after strong gains in June and July. That decline reflected, at least in part, volatile hiring patterns around education as schools prepared to reopen amid the pandemic.

Public-Facing Service Industries See Large Decline

One areas of solid hiring strength last month was among manufacturers and shipping and warehouse companies.

But job growth among service industries that involve public engagement weakened sharply, a consequence in some cases of diminished public traffic. Some live shows, including the remaining concerts on country star Garth Brooks’ tour, for example, have been canceled. Businesses are delaying their returns to offices, threatening the survival of some downtown restaurants, coffee shops and dry cleaners.

Yet there is much evidence that many companies are still looking to hire, particularly employers that are not in public-facing service industries like restaurants and bars. The job listings website Indeed says the number of available jobs grew in August, led by such sectors as information technology and finance, in which many employees can work from home.

Walmart announced this week that it will hire 20,000 people to expand its supply chain and online shopping operations, including jobs for order fillers, drivers, and managers. Amazon said Wednesday that it is looking to fill 40,000 jobs in the U.S., mostly technology and hourly positions.

And Fidelity Investments said Tuesday that it is adding 9,000 more jobs, including in customer service and IT.

Despite Slowdown in Hiring, Many Positions Still Vacant

Last month’s slowdown in hiring suggests that even though many businesses want to fill jobs, they’re unable to find all the workers they need. That trend is is pushing up wages, which rose a robust 4.3% in August compared with a year earlier. Walmart, for one, said it was giving over 500,000 of its store employees a $1 an hour raise.

Governors in about 25 states, nearly all led by Republican governors, cut off a $300-a-week in federal supplemental unemployment benefits in June and July because, they said, the extra money was discouraging recipients from looking for work. Yet the proportion of Americans with jobs or searching for one was flat in August, Friday’s report showed, suggesting that the cutoff had little impact.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Fresno Man Facing Multiple Charges After Violent Freeway Pursuit and Shooting

DON'T MISS

Former Porterville Librarian Accused of Stealing Thousands From Elderly Friend

DON'T MISS

As Fresno Files First Case, Maxwell Vows to Protect Wage Theft Unit

DON'T MISS

Fowler Felon Jailed After Officers Find Assault Rifle, Drugs in Home Search

DON'T MISS

Young People Drive Fresno to CA’s Top Job Growth: Wells Fargo Study

DON'T MISS

Judge Rejects Claim That Sean ‘Diddy’ Combs Was Treated Differently Because of His Race

DON'T MISS

Rapper Tory Lanez Attacked at a California Prison as He Serves Time for Megan Thee Stallion Shooting

DON'T MISS

Grapevine Fire Forces Full Closure of Southbound I-5

DON'T MISS

Fresno’s New Economic Development Leader Has Boomtown Expertise

DON'T MISS

KMJ’s Ray Appleton Is Off the Air as He Deals With ‘Rare Condition’

UP NEXT

Fresno’s New Economic Development Leader Has Boomtown Expertise

UP NEXT

Economic Jitters and Soaring Gold Prices Create a Frenzy for US Jewelry Merchants

UP NEXT

S&P 500 Jumps to Over Two-Month High

UP NEXT

US-China Tariff Delay Gives Fed Fresh Reason to Sit Tight on Rates

UP NEXT

US-China Tariff Talks to Continue Sunday, an Official Tells The Associated Press

UP NEXT

Tax the Rich? Slash Spending? Republicans Wrestle With Economic Priorities in the Trump Era

UP NEXT

Tariff Talks Begin Between US and Chinese Officials in Geneva

UP NEXT

Other States Are Showing California How to Protect Its Budget Without Cutting Needed Services

UP NEXT

The Latest: Trump Floats Cutting China Tariffs to 80% Ahead of Weekend Meeting

UP NEXT

Wall Street Drifts as It Waits for a Highly Anticipated US-China Meeting on Trade

Fowler Felon Jailed After Officers Find Assault Rifle, Drugs in Home Search

12 hours ago

Young People Drive Fresno to CA’s Top Job Growth: Wells Fargo Study

12 hours ago

Judge Rejects Claim That Sean ‘Diddy’ Combs Was Treated Differently Because of His Race

12 hours ago

Rapper Tory Lanez Attacked at a California Prison as He Serves Time for Megan Thee Stallion Shooting

12 hours ago

Grapevine Fire Forces Full Closure of Southbound I-5

12 hours ago

Fresno’s New Economic Development Leader Has Boomtown Expertise

13 hours ago

KMJ’s Ray Appleton Is Off the Air as He Deals With ‘Rare Condition’

13 hours ago

Bakersfield Man Pleads Guilty to Aiming Laser at Sheriff’s Helicopter

14 hours ago

Erika Sandoval Faces Life Sentence for Murder of Former Exeter Police Officer

14 hours ago

US Car Prices Higher in April After Tariffs Hit

14 hours ago

Fresno Man Facing Multiple Charges After Violent Freeway Pursuit and Shooting

The Fresno County District Attorney’s Office has filed charges against a 31-year-old Fresno man, accusing him of attempted murder and ...

10 hours ago

10 hours ago

Fresno Man Facing Multiple Charges After Violent Freeway Pursuit and Shooting

A former Porterville librarian, Vikki Ann Cervantes, 50, faces felony charges for allegedly stealing thousands of dollars from an elderly friend over the course of a year while managing her finances. (Shutterstock)
11 hours ago

Former Porterville Librarian Accused of Stealing Thousands From Elderly Friend

11 hours ago

As Fresno Files First Case, Maxwell Vows to Protect Wage Theft Unit

Fowler police and sheriff’s deputies arrested two residents Monday, May 12, 2025, after finding illegal firearms, drugs, and stolen property during a search of their home. (Fowler PD)
12 hours ago

Fowler Felon Jailed After Officers Find Assault Rifle, Drugs in Home Search

12 hours ago

Young People Drive Fresno to CA’s Top Job Growth: Wells Fargo Study

Sean 'Diddy' Combs, far left, looks on from the defense table with his attorneys, as a prospective juror, far right, answers questions posed by Judge Arun Subramanian, center, at Manhattan federal court, Monday, May 5, 2025, in New York. (Elizabeth Williams via AP)
12 hours ago

Judge Rejects Claim That Sean ‘Diddy’ Combs Was Treated Differently Because of His Race

Singer Tory Lanez returns to the Clara Shortridge Foltz Criminal Justice Center for his trial, Dec. 13, 2022, in Los Angeles. (AP File)
12 hours ago

Rapper Tory Lanez Attacked at a California Prison as He Serves Time for Megan Thee Stallion Shooting

A fire has shut down all southbound lanes of I-5 at Grapevine Road on Monday, May 12, 2025, prompting major traffic delays as crews work to extinguish the flames. (CHP)
12 hours ago

Grapevine Fire Forces Full Closure of Southbound I-5

Help continue the work that gets you the news that matters most.

Search

Send this to a friend