When the December jobs report is released Friday morning, markets will be looking for a number that hits a sweet spot between not so robust as to trigger more interest rate hikes and not so slow as to raise worries about the economy.
The monthly labor report from the Bureau of Labor Statistics is expected to show nonfarm payrolls rose by 175,000 in December while the unemployment rate ticked up to 3.8%. In November, the US economy added 199,000 jobs while unemployment unexpectedly fell to 3.7%.
Here are the key numbers Wall Street will be looking at, according to data from Bloomberg:
– Nonfarm payrolls expected to rise by 175,000
– Unemployment rate expected to tick up to 3.8% from the previous month’s 3.7%
The anticipated numbers suggest the market’s expectations for a moderation in job creation at the close of 2023. A growth rate within this range is seen as ideal, avoiding excessive tightening of the labor market, which could lead to additional interest rate hikes, while also not signaling a considerable slowdown in economic activity.
Economists and investors will be closely observing the report to gauge the health of the labor market and its potential impact on monetary policy. The Federal Reserve has been closely monitoring economic indicators to determine the appropriate trajectory for interest rates in response to changing labor market conditions.
While the numbers from the report will provide valuable insight into the state of the labor market, they will also have broader implications for the economy. A robust labor market is typically indicative of healthy consumer spending and economic growth, while a slowdown in job creation could raise concerns about the overall economic trajectory.
Overall, the December jobs report presents a crucial snapshot of the US labor market as it heads into the new year, offering important signals for policymakers, investors, and businesses as they navigate the evolving economic landscape.
