The Delta has risen. Many economists are worried that this phase of the COVID pandemic could choke off the economic recovery – or at least slow it down. Looking for evidence? It is all about jobs. If the economy continues to add jobs at a decent clip, the economy will continue to progress toward a full recovery, as nothing spurs economic growth like having more of our population going back to work.
Since the August jobs data was disappointing as a whole, all eyes will be on the employment report this week. A strong report will allay the concerns of many. Another weak report will start to show a trend. Keep in mind that even the weaker reports of today would be considered a solid report in normal times if we were not catching up from the jobs lost during the pandemic induced recession. In that regard we are close to 75% of the way back.
The market analysts will be looking at more than just the addition of jobs. They will also be looking at the rise in wages as they watch for additional signs of inflation. The types of jobs added will also be important. Many jobs were lost in the food service, retail and entertainment sectors. If consumers are eating out and going to shows, this is another sign of economic re-awakening. Thus, there will be a lot for us to chew on come Friday. There are also signs that malls are coming back to life and many thought that might never happen.