August Jobs Report ‘A Big, Big Miss’ — Slowest Growth Since Biden Took Office
The US economy tumbled last month as job growth slowed dramatically and fell short of economists’ estimates by almost half a million new jobs.
The Department of Labor released data on Friday showing that the economy added just 235,000 jobs in August despite high expectations coming from the Biden administration.
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The figure was also significantly lower than the 720,000 predicted by economists for that month and was also way below the job growth seen in the two months prior when the US economy recorded 962,000 jobs in June and another 1.1 million in July.
“That is what one would call a big, big miss,” CNN White House correspondent Phil Mattingly said, posting about the data release.
August Jobs Report:
+ 235,000 (economist forecasts: 725,000)That is what one would call a big, big miss.
Unemployment rate: 5.2%
— Phil Mattingly (@Phil_Mattingly) September 3, 2021
Employment numbers were no exception.
For August, the country’s unemployment rate declined from 5.4% to 5.2% and although reports said this is in-line with expectations — the job numbers were “the worst” ever recorded since President Joe Biden took office in January.
The data revealed that although most sectors showed “limited gains” for the month, the anticipated bounce back in the leisure and hospitality industry did not happen as numbers remained far below the pre-pandemic employment level for the sector.
“In August, employment in leisure and hospitality was unchanged, after increasing by an average of 350,000 per month over the prior 6 months. In August, a job gain in arts, entertainment, and recreation (+36,000) was more than offset by a loss in food services and drinking places (-42,000),” the Department of Labor said.
It added that “employment in leisure and hospitality is down by 1.7 million, or 10.0 percent, since February 2020.”
Economists blamed the rise of cases caused by the Delta variant of Covid-19 for the stunted growth in the labor market — with some states holding to restrictions and lockdowns to help stem the spread of the new virus variant.
“The labor market recovery hit the brakes this month with a dramatic showdown in all industries,” Daniel Zhao, senior economist at jobs site Glassdoor, told CNBC. “Ultimately, the Delta variant wave is a harsh reminder that the pandemic is still in the driver’s seat, and it controls our economic future.”
Delta variant not to blame
Nonetheless, some conservatives have pushed back on the said theory, pointing out that “fear mongering” — fueled by the mainstream media and the Biden administration is to blame.
Conservative political commentator and media host Ben Shapiro argued that pointing finger at the Delta variant for the persisting economic slowdown doesn’t make sense considering the widespread availability of effective vaccines against COVID-19.
“The problem is not the Delta variant,” Shapiro commented. The problem is the media, the Biden administration, and blue state politicians telling people to freak the hell out about the delta variant. This has resulted in the vaccinated freaking out and the unvaccinated acting as they always did.”
The problem is not the delta variant. The problem is the media, the Biden administration, and blue state politicians telling people to freak the hell out about the delta variant. This has resulted in the vaccinated freaking out and the unvaccinated acting as they always did. https://t.co/2eEdLiAqWs
— Ben Shapiro (@benshapiro) September 3, 2021
“Americans divide into two groups: the worried and the unworried. Nearly the entirety of the worried are vaccinated, unjustifiably; most of the unworried are unvaccinated. It is the worried vaccinated who are calling for lockdowns and mandates and tanking the economy,” he continued.
Americans divide into two groups: the worried and the unworried. Nearly the entirety of the worried are vaccinated, unjustifiably; most of the unworried are unvaccinated. It is the worried vaccinated who are calling for lockdowns and mandates and tanking the economy.
— Ben Shapiro (@benshapiro) September 3, 2021
“That’s a big reason why 9 of the 10 best states for unemployment are red, and ~17 of the top 20. And it’s why all nine+DC of the worst are blue.”
That's a big reason why 9 of the 10 best states for unemployment are red, and ~17 of the top 20. And it's why all nine+DC of the worst are blue. https://t.co/PeAcmPaY8T
— Ben Shapiro (@benshapiro) September 3, 2021
The lackluster jobs report comes as the US continues to face record inflation adding further concerns about the health of the US economy.
The Department of Labor’s Producer Price Index (PPI) recorded a year-over-year rise of 7.8% in July, which is said to be the highest ever recorded.
Meanwhile, US Consumer Prices rose 5.4% in July from a year earlier, marking the largest jump since August 2008.
CPI is a measure of the total value of goods and services consumers have bought over a specified period, while PPI is a measure of inflation from the perspective of producers.
