As has almost become the norm in this post-pandemic world, hopes were shattered today as the August jobs report was released showing disappointing results based on market expectations.
Many were eager to point the finger at what they considered to be the cause of this lackluster data, with very few actually offering helpful suggestions and/or taking the blame for the disappointing data.
Today we take a closer look at the latest jobs report, what it means as well as the response coming out of D.C.
The Report
The most highly anticipated event of the past week was today’s release of the August jobs report. Many in D.C. and on Wall Street look to these monthly releases as indicators for economic momentum in the United States and whether or not we’re making any progress towards pre-pandemic highs.
Needless to say, Friday’s update was certainly not what most were hoping for… The report indicates that hiring slowed considerably in August, adding a mere 235,000 jobs as opposed the last two months which have both hovered around the 1 million mark.
According to the U.S. Labor Department, the results were well below the 728,000 gains forecast economists had predicted.
The unemployment rate fared a bit better, however, being reported at 5.2% as opposed to last month’s reported 5.4%.
The D.C. Response
President Biden chimed in on Friday’s jobs update during a press conference during which he admitted that the August results were disappointing and that officials had expected a “larger number.”
President Biden blames the continued spread of the Corona Virus for the disappointing results of the jobs report, but continued to indicate that the labor market’s recovery from the pandemic is “durable and strong.”
Speaking from the White House, President Biden stated, “Some wanted to see a larger number today, and so did I, but what we’ve seen is continued growth month after month. We’ve added jobs in every single one of my first seven jobs reports… This is the kind of growth that makes our economy stronger. Constant progress, not boom or bust.”
What This Means…
With all this negative news coming our way, many traders can’t help but wonder what all this could mean for their investments as well as their lives as we make our way into the winter months once again…
Per President Biden, this lackluster report is a clear indicator that many continue to fear the continued spread of the Delta Variant leading companies to hold off on hiring and, therefore, hindering many from finding new career opportunities.
Biden feels a major component to tackling this issue is to first tackle the virus in all its forms.
“We need to make more progress in fighting the delta variant of COVID-19,” Biden said on Friday. “This is a continuing pandemic of the unvaccinated.”
… If true, the booming economy we once knew could very well be further off than we had hoped. In order to tackle one problem we must first confront another and that makes this task considerably more difficult.
It can be expected that, should the United States be met with more virus-related issues in the latter half of 2021, the economy will react accordingly, potentially throwing markets into a tailspin that could be harder to get out of than the one we faced in 2020.
Learn More Here…
Despite this week’s disappointing jobs update, there’s still much to be optimistic for in the markets and the Ask the Pros team is here today to fill you in on, not just the negative, but the positive that came out of the past few days and how you could take advantage of the situation and still end up on top…
Join this week’s panel below as they explore this and many more topics on the latest edition of Ask the Pros!
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