The U.S. economy floundered last month as job growth fell sharply and missed economists’ expectations by nearly half-a-million new jobs.
The economy added 235,000 jobs in August, far below economists’ predictions of 720,000 and a sharp drop in job growth from the previous two months when the economy added 962,000 jobs in June and another 1.1 million in July, according to Department of Labor data released Friday.
“That is what one would call a big, big miss,” CNN White House correspondent Phil Mattingly noted.
August Jobs Report:
+ 235,000 (economist forecasts: 725,000)
That is what one would call a big, big miss.
Unemployment rate: 5.2%
— Phil Mattingly (@Phil_Mattingly) September 3, 2021
The unemployment rate dropped from 5.4% to 5.2%, in line with economists’ expectations. The jobs numbers are the worst posted since Biden took office in January, according to CNBC. While most sectors posted limited gains, growth in the leisure and hospitality sector stalled and remains far below its pre-pandemic employment level.
“In August, employment