BBVA Research | The labor market hit the brakes in August, probably driven by both demand and supply factors as a consumption demand slowdown along with increasing health concerns, both associated with the Delta variant, impacted the labor market.
Job creation was a major disappointment in August.
There is still a way to go to fully recover and the road will likely remain bumpy in the short-term as the Delta COVID variant continues to negatively weigh on labor force participation and employment growth in the coming months.
The labor market is set to strengthen (and fully recover) in coming months (and quarters) once the factors that have driven the temporary labor shortages gradually fade away.
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