The Labor Department reported on Friday that job creation for August was a major disappointment, with the economy increasing only 235,000 jobs.
Economists surveyed by Dow Jones were looking for 720,000 new employees.
The unemployment rate has fallen from 5.4% to 5.2% according to estimates.
August’s total was the worst since January and comes with fears of the pandemic and the impact it could have on the increase in Covid cases which have mostly been strong recoveries so far .
Weekly jobless claims have fallen to their lowest level since the first days of the pandemic in March 2020, but a large employment gap remains.
It’s not that there aren’t enough jobs: placement firms actually estimate that there are now around 10.5 million openings, a record for the U.S. job market.
Federal Reserve officials are watching the employment figures closely to see if they can start canceling some of the political aid they have been providing since the start of the pandemic.
In recent weeks, central bank executives have expressed optimism about the employment situation, but said they would need to see continued strength before they could change course. At stake for now is the Fed’s massive monthly bond buying program, which could start to pick up before the end of the year.
However, if the jobs numbers soften, that could cause Fed officials to wait until 2022 before tightening.
This is last minute news. Please come back here for updates.
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