US private payrolls rise by 374,000 in August, badly missing forecasts

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US private payrolls rise by 374,000 in August, badly missing forecasts
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US private payrolls rise by 374,000 in August — badly missing estimates as virus cases surge higher

Hiring by private-sector US businesses fell well short of expectations in August amid rebounding COVID cases and the return of some mask-wearing orders.

The August report shows the labor market struggling to recover as COVID cases surged higher. Daily case counts reached their highest since January last month as the Delta wave intensified across the country. The increase also led state and local governments to reimpose some mask-wearing rules, marking an abrupt ending to the reopening experienced through spring and early summer.

The print also suggests some states' early cuts to federal unemployment benefits did little to push Americans into the workforce. Twenty-six states prematurely ended the federal government's boost to unemployment insurance in a bid to accelerate hiring. While the move was meant to counter the labor shortage, recent studies suggest the cuts did more harm than good.

Hiring was flat in the information sector and declined slightly at businesses that manage companies and enterprises, according to ADP.

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