December jobs report expected to show hiring slowdown, steady unemployment rate

Published On Jan 9, 2025, 1:10 PM

The December jobs report is anticipated to show a slowdown in hiring, with expectations for an increase of 165,000 new jobs while maintaining an unemployment rate of 4.2%. This reflects a decrease from November's job addition of 227,000, which was impacted by prior weather disruptions. Additionally, average hourly earnings grew by 0.3% month-over-month. Analysts suggest that the softer job growth could influence the Federal Reserve’s decisions on interest rates, particularly highlighting a minimal chance of rate cuts in the near future. Some strategists believe that a strong job report could put downward pressure on stocks, while others are optimistic about continued economic growth despite market reactions. Investors should be mindful of upcoming data and revisions, as these are crucial in evaluating labor market trends and economic health.