September 19, 2021

Delta might stunt U.S. job creation in August, but not enough to derail economy

From Wall Street to Washington, everyone seems to expect another big gain in the number of new U.S. jobs created in August. But what if hiring turns out to be a dud?

Truth is, it probably doesn’t matter.

Oh, sure, it could delay for a month or two the Federal Reserve’s long-anticipated process of unwinding its easy money policies introduced last year to aid the economy during the worst of the pandemic. But it doesn’t alter the bigger picture. The Fed and most investors are convinced the U.S. is on a path to full recovery.

How come? By almost every measure, the labor market is on fire. Consider:

The U.S. has created an average of 831,000 new jobs in each of the past three months. The official unemployment rate has fallen to 5.4% from 6.1%. And job openings recently topped a record 10 million for the first time.

“The past three months…

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