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US Nonfarm Payrolls Post Slight Rebound, But Remains Below Pre-COVID Levels

September 1, 2021 by Forex Winner Leave a Comment

US Nonfarm Payrolls Post Slight Rebound, But Remains Below Pre-COVID Levels

Source: ADP

The American private sector employment rebounded in August, mainly driven mainly by additional staffing in the leisure and hospitality sector, but data indicates a slowdown from the first six months of the year.

  • Private sector employment grew by 374,000 in August. This is higher than the 326,000 in July, but lower than 460,000 in August 2020.
  • Large businesses added 138,000, followed by medium businesses, which hired 149,000, and small businesses that employed 86,000.
  • Growth was seen mainly in service-providing firms with 329,000. This was led by leisure and hospitality, with 201,000 jobs added.
  • Education and health services added 59,000 jobs, followed by professional and business activities with 19,000 and trade, transportation, and utilities with 18,000.
  • ADP Chief Economist Nela Richardson reported a deceleration in the recovery of the job market, as new hires have dropped after sharp increases in the previous months.
  • Employment increases for the year are close to 4 million, but 7 million jobs below pre-COVID-19 levels.
  • Moody’s Analytics Chief Economist Mark Zandi attributed the slowdown to the spread of the COVID-19 delta variant but noted that growth remains strong.

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