Monday, February 6, 2023
Homemarket insiderFriday's jobs report is expected to be solid, but delta variant raises...

Friday’s jobs report is expected to be solid, but delta variant raises downside risk

  • August's jobs report is expected to show 720,000 jobs were created, according to Dow Jones.
  • Economists said the report could influence the Fed's decision on when to announce it is paring back its bond purchases.
  • "I think the risks are very much to the downside," one strategist said. "I'm not sure how much we're factoring in the impacts of delta."

In this article

A sign advertising job openings is seen while people walk into the store in New York City, New York, U.S., August 6, 2021.Eduardo Munoz | Reuters

August's employment report is expected to show another strong month for hiring, but it could also give a glimpse at how the Covid-19 delta variant has impacted the economy.

The jobs report, set for release Friday at 8:30 a.m. ET, is also expected to provide critical guidance for the Federal Reserve in its process of deciding when to begin trimming its bond purchases.

According to Dow Jones, economists expect 720,000 payrolls were added in August. That would be a strong number, but down from the 943,000 in July. The unemployment rate is expected to have slipped to 5.2% from 5.4%, and average hourly earnings are forecast to have risen by 0.3% or 4% on an annual basis.

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