Despite a glowing report for the final week of August, the monthly look-back was not as optimistic.
Economists were disappointed as the Labor Department revealed that the U.S. added only 235,000 new jobs in August, falling very short of the estimated 733,000 addition, Business Insider reported.
While most financial gurus are blaming the Delta variant for limited job growth last month, it could have more to do with the fact that many people are still enjoying the extra government pandemic assistance benefits which disincentivize them from returning to work.
With the labor shortage, employers are having trouble finding enough staff, let alone adding more.
However, a small percentage of the unemployed were able to return to work last month as the unemployment rate saw a slight decrease to 5.2 percent from 5.4 percent.
As a result of what financial experts consider a weak August jobs report, U.S. stocks dropped on Friday. While the Dow Jones fell by 0.2 percent, the S&P also declined 0.1 percent, according to Barron’s. Nasdaq was reportedly up 0.15 percent after it dipped into the red.