US hiring slows to just 235,000 jobs after 2 strong months

WASHINGTON (AP) — 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 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. Alhough hiring was relatively tepid in August, the unemployment rate dropped to 5.2% from 5.4% in July.

Friday's report provided numerous signs that the delta variant depressed 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 added roughly 400,000 jobs in 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 lost 3,000 jobs despite strong demand for new homes.