/US Hiring Drops Sharply Amid Delta

US Hiring Drops Sharply Amid Delta

U.S. hiring downshifted abruptly in August with the smallest jobs gain in seven months, complicating a potential decision by the Federal Reserve to begin scaling back monetary support by year end.

Nonfarm payrolls increased 235,000 last month, trailing all forecasts, after an upwardly revised 1.05 million gain in July, a Labor Department report showed Friday. Employment inĀ leisure and hospitality, which has posted strong gains recently, was flat amid the spreading delta variant and persistent hiring challenges.

The unemployment rate fell to 5.2% from 5.4%.

The median estimate in a Bloomberg survey of economists was for a 733,000 monthly advance in August. The yield on the 10-year Treasury note rose, while the dollar fell and the S&P 500 opened lower after the report.

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