US hiring surges in July, but the variant is the wild card

Hiring surged in July as American employers added 943,000 jobs

WASHINGTON -- U.S employers added 943,000 jobs in July and drove the unemployment rate down to 5.4% in another sign the economy is bouncing back with surprising vigor from COVID-19. But there is growing fear the fast-spreading delta variant will set back the recovery. The worry is that the resurgent virus could discourage people from going out and spending and trigger another round of shutdowns or other restrictions. “That is a definite downside risk,’’ said Rubeela Farooqi, chief U.S. economist at High Frequency Economics. “The risk is from a more cautious consumer, if they don’t want to engage in outside activities. ... You’re also hearing about big companies that are delaying a return to work. That might be something that slows things down.’’ The Labor Department collected its data for the report in mid-July before the Centers for Disease Control and Prevention last week reversed course and recommended that even vaccinated people resume wearing masks indoors in places where the variant is pushing infections up.