Hiring Slowed in August

Plus: How the Stock Market Views the Jobs Report You are receiving this limited-time email resource as a subscriber to Kiplinger's free e-newsletters. To unsubscribe at any time, simply click the link in the footer below. SEPTEMBER 3, 2021 [View in browser]( HOW TO PROTECT AND GROW YOUR BUSINESS AND INVESTMENTS NOW A smallish jobs report (with 225,000 net new jobs) showed that the Delta infection surge slowed hiring from July’s blowout 1.05 million gain. The biggest impact was in food service, as restaurants cut staff after the hiring binge they went on during the previous six months. Teachers and other school staff additions came to a sudden end in August, as most of the hiring for the fall was done in June and July. Retail, home health care and nursing homes also showed job losses. Despite the slowdown in hiring, the unemployment rate fell to 5.2%. Workers’ wages continued to grow strongly, and are up 4.3% from one year ago. This is an indication of continued worker shortages, as business activity ramped up before some workers were able or willing to go back to a job. Expect that when the Delta surge ends in October or so (hopefully), massive hiring will resume. --------------------------------------------------------------- SPONSORED CONTENT FROM SMARTASSET [Startup Raises $51 Million to Tackle the Retirement Industry]( With 110 million Americans over age 50, it's no wonder this Princeton grad's startup raised over $51M to help people plan for an easier retirement. [READ MORE]( --------------------------------------------------------------- What the August jobs report means for stocks: Heading into today’s data release from the Bureau of Labor Statistics, a number of market strategists considered August’s employment situation inextricably linked to the Federal Reserve’s next move. A robust report would have been considered a clincher in the Fed’s decision to pull back on asset purchases, with such an announcement coming as early as this month’s FOMC meeting. But what now, given today’s underwhelming report? “This will certainly help keep the Fed on hold on their tapering plans, likely for the rest of the year, and keep interest rates low which will likely cushion any impact on the markets,” says Brad McMillan, chief investment officer for RIA and independent broker/dealer Commonwealth Financial Network. “The stock market loves stimulus, and any indication that the Fed will remain fully accommodative is good news for investors,” adds Jay Pestrichelli, CEO of investment firm ZEGA Financial, who stresses that investors remain invested rather than try to time the market around the Fed or any other major events. Kiplinger expects the Fed to announce its plan to taper asset purchases at its December meeting, assuming that the current wave of COVID-19 infections eases enough to allow hiring to pick up again briskly this fall. In the Sept. 1 issue of Step Ahead, we said, incorrectly, that next year's expected 6% cost of living adjustment for Social Security would be the largest since 2008. It would actually be the largest since 1982. We regret the error. Free download, [The Kiplinger Letter's Forecast](. No information required from you. SPONSORED CONTENT FROM BETTERMENT [Build Wealth in a Globally Diversified Portfolio]( Betterment's strategies diversify your investments across the globe to optimize returns. You can review any investment strategy’s historical performance before you select it, and you’ll always be able to see your goal’s performance in your account. [Start investing now](. [READ MORE]( RELATED LINKS [How to Find a Lost Retirement Account]( [Check Out Your Stock's ESG Report Card]( [9 Questions to Ask Aging Parents About Their Finances]( [October Is a Spooky Month for Stocks]( [Sign Up Free for Kiplinger Today -- Timely Tips to Make and Keep More of Your Money Every Day]( [Kiplinger] [Facebook]( [Twitter]( [LinkedIn]( Send this to a friend. [Click here.]( All content ©2021 The Kiplinger Washington Editors 1100 13th Street, NW, Suite 1000 Washington, D.C. 20005 Thank you for subscribing to Kiplinger's A Step Ahead, a free resource to help readers navigate the economic recovery from COVID-19. If you ever wish to stop receiving this service, please [click here to unsubscribe](.