The U.S. economy likely closed out 2024 by adding jobs steadily, continuing the trend of recent months.

A report on the labor market due from the Bureau of Labor Statistics on Friday will likely show that the U.S. economy added 155,000 jobs in December, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal. That would be fewer than the 227,000 jobs added in December and a little above the 143,000 jobs added on average for each of the past six months. The forecasters expect the unemployment rate to hold steady at 4.2%, which is relatively low by historical standards.

Private-sector employers added 122,000 jobs in December, according to a survey by payroll provider ADP released Wednesday. That was short of the median forecast for 136,000. The ADP figures can foreshadow the official government data, but many economists consider it an unreliable indicator.

That pace of job creation is a slowdown from earlier in the post-pandemic era when workers were in much higher demand and the economy rebounded from the COVID-19 recession. High borrowing costs for loans—a result of the Federal Reserve's campaign of interest rate hikes meant to curb inflation since 2022—have discouraged borrowing and spending and thrown some sand in the gears of the job market.

What's Ahead for the Job Market?

Some economists 澳洲幸运5官方开奖结果体彩网:expect the job market to bounce back in 2025, while others 澳洲幸运5官方开奖结果体彩网:predict a continued slowdown.

Economic predictions always come with a 澳洲幸运5官方开奖结果体彩网:grain of salt, and perhaps more so this year, given the uncertainties about the policies of the second Trump administration. The course of the job market could hinge on the extent to which Trump implements 澳洲幸运5官方开奖结果体彩网:tariffs on foreign trade or imposes tax cuts for corporations among other major policy shifts he promised on the campaign trail.

For now, though, economists see the job market as stable for workers: employers 澳洲幸运5官方开奖结果体彩网:aren't hiring a ton, but they aren't starting mass layoffs either.

"Employers, scarred by the post-pandemic labor shortage and aware that the days of ample labor supply are likely over, tell me they don’t want to get caught short workers again," Thomas Barkin, president of the Federal Reserve Bank of Richmond, said in a speech Friday. "As a result, while cautious employers are allowing headcount to drift downward through attrition and reduced hiring, they are slow to reduce s𒀰taff. The layoff rate remains near historic lows. A low hiring, low firin🌃g labor market is still a healthy one."

Highly Anticipated Data for Investors

Financial market participants will be watching the jobs numbers closely amid concerns that a stronger-than-ꦯexpected reading could keep the Fed from cutting interest rates again.

In recent weeks, several indicators have shown the economy to be surprisingly resilient and 澳洲幸运5官方开奖结果体彩网:thrown cold water on hopes in financial markets that the Fed will continue cutting its influential 澳洲幸运5官方开奖结果体彩网:federal funds rate, as it has done at its l♒ast three policy meeti𒅌ngs since September.

Labor market data 澳洲幸运5官方开奖结果体彩网:earlier this week showing that more jobs were available in November than economists anticipated added to market uncertainty about the path of interest rates. 澳洲幸运5官方开奖结果体彩网:Stocks tumbled and the yield on 1꧂0-year Treasurys hit its highest lev🍸el since April.

As of Wednesday, financial markets were pricing in a nearly a one-in-three chance that the Fed won't cut interest rates in the first half of this year, up from the 11% likelihood seen a month ago, according to the CME Group's FedWatch tool, which forecasts rate movements based on fed funds futures trading data.

The Fed had held its key interest rate at a two-decade high for the year leading up to September in an effort to quash inflation. Since then, the central bank's policy committee has 澳🅘洲幸✱运5官方开奖结果体彩网:cut the rate by an entire percentage point over the course of three meetings. Committee members have, however, caution♎ed that the pace of easing is likely to slow as inflation pressures persist.

Update, Jan. 9, 2025: This story has been updated with information about recent Federal Reserve decisions on interest rates and about the importance of the data to financial markets.