December jobs report may show 'cooling trend' in the labor market
FreedomWorks senior economist Steve Moore provides insight on the state of the economy on 'Making Money.'
All eyes will be on the December jobs report when it is released Friday morning, as investors look for clues about the labor market's health in the face of higher interest rates and still-high inflation.
The Labor Department's high-stakes December payroll report, due at 8:30 a.m. ET, is projected to show that hiring increased by 170,000 last month and that the unemployment rate inched higher to 3.8%, according to a median estimate by Refinitiv economists.
That would mark a decrease from the 199,000 gain in November and the average monthly gain of 232,000 recorded over the previous 12 months.
«As winter weather sets in across much of the country, the December employment report is expected to reflect a bit of a cooling trend,» said Mark Hamrick, senior economic analyst at Bankrate.
WORKERS NOW DEMANDING NEARLY $80K TO START NEW JOB
The Federal Reserve is closely watching the report for evidence that the labor market is finally softening after months of surprisingly solid job gains as policymakers try to ensure that inflation continues to ease. The consumer price index has cooled considerably in recent months but remains above the Fed's preferred 2% target, despite 11 interest rate hikes in the span of 16 months.
IS THE FEDERAL RESERVE DONE RAISING INTEREST RATES?
Slower job growth and further moderation in wage gains on Friday could be a welcome sign for the U.S. central bank, which held interest rates steady for the third straight month in December. Most economists believe the central bank is finished with its tightening campaign and could begin to cut rates later this year.
Average hourly earnings, a key measure
Read more on foxbusiness.com
