Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Nashville news?

Get a daily digest of the most important stories affecting your hometown with the Axios Nashville newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Columbus news?

Get a daily digest of the most important stories affecting your hometown with the Axios Columbus newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Dallas news?

Get a daily digest of the most important stories affecting your hometown with the Axios Dallas newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!
Data: Census; Chart: Axios Visuals

COVID concerns are keeping a growing number of Americans out of the labor market.

Why it matters: The wave of Delta variant infections over the past two months has renewed worker fears, which threatens to exacerbate ongoing labor shortages.

  • It's a reversal from earlier in the summer when the distribution of COVID-19 vaccines enabled employers to fill open jobs for months as workplace safety improved.

By the numbers: According to the Census Household Pulse Survey (conducted Aug. 18-30) released Wednesday, 3.2 million Americans said they were not working because they were "concerned about getting or spreading the coronavirus."

  • This is up from the low of 2.5 million in the July 21 to Aug. 2 survey.
  • The number peaked at 6.24 million in July 2020 but has been trending lower ever since.

Flashback: The U.S. economy added just 235,000 jobs in August, well short of economists’ expectation for 725,000 jobs and a sharp deceleration from the 1.05 million jobs created in July.

  • According to Friday’s report, 5.6 million people said they were "unable to work because their employer closed or lost business due to the pandemic."

The big picture: The Census data confirms the argument that recent weakness in the hiring data is a supply issue, not a deterioration in demand.

  • Indeed, another batch of recent labor market data released Wednesday showed there was a record 10.9 million jobs openings in the U.S. in July.
  • And the Federal Reserve's latest Beige Book, which collects business anecdotes, noted that “Demand for workers continued to strengthen, but all Districts noted extensive labor shortages that were constraining employment and, in many cases, impeding business activity."
  • “Overall demand for workers remains strong, and with cases appearing close to peaking, the Delta surge is only a temporary setback for the labor market’s recovery,” Wells Fargo senior economist Sarah House tells Axios.

Yes, but: “But the effect of the variant could linger and extend into September, depending on how the health situation evolves and if it impacts school reopenings,” Rubeela Farooqi, chief U.S. economist at High Frequency Economics, tells Axios.

  • “That will have implications for both labor demand and supply.”

What to watch: Evidence from economic reports and corporate announcements has mostly blamed short-term shortfalls on supply chain issues and labor shortages, which suggests demand is just being delayed. It’ll be a much bigger problem for the economy if demand is actually weakening.

Go deeper

Oct 22, 2021 - Health

Illinois mandates daycare workers to receive COVID vaccine or weekly testing

Illinois Gov. J.B. Pritzker speaks during a round table discussion with high school students in October 2018. Photo: Joshua Lott/Getty Images

Illinois Gov. J.B. Pritzker (D) announced Friday that all daycare workers in the state will be required to receive the COVID-19 vaccine or or submit to weekly testing.

Driving the news: Pritzker said he was issuing the requirement to protect "babies, toddlers, and young children not yet eligible for the vaccine."

Oct 22, 2021 - Health

CDC director: U.S. may change definition of "fully vaccinated" as boosters roll out

CDC Director Rochelle Walensky. Photo: Greg Nash-Pool/Getty Images

Rochelle Walensky, director of the Centers for Disease Control and Prevention, said Friday the U.S. "may need to update" its definition for what it means to have full vaccination against COVID.

The big picture: The CDC and the FDA have officially approved boosters with every authorized vaccine in the U.S. for people who meet specific requirements. Walensky explained that since not everyone is eligible for a booster, the definition has not been changed "yet."

Changing the inflation conversation

Illustration: Annelise Capossela/Axios

Inflation looks like it’ll run hot for longer than plenty of smart people thought it would. The conversation over just how much more Americans will have to pay for their stuff has taken on a new intensity, as supply problems show few signs of fading.

Why it matters: The rate of price growth has remained consistently strong in recent months — a time that some thought would bring cooling prices after an initial reopening spike. What goes on with prices will influence the decisions made by Congress, the Biden Administration, and the Federal Reserve.