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US employers likely slow their hiring in December
(MENAFN) US employers likely slowed their hiring in December, marking the conclusion of a year characterized by moderating yet still healthy job growth. Economists predict payrolls increased by 160,000 in December, based on the median projection from a Bloomberg survey. This would bring the average monthly job growth for 2024 to around 180,000, a lower figure compared to the previous three years, but still indicative of a resilient labour market. The impact of previous disruptions, such as hurricanes and strikes, is now behind, contributing to a clearer picture of the labor market’s performance.
The December jobs data is unlikely to significantly alter the outlook of Federal Reserve officials, who are expected to continue slowing the pace of interest rate cuts. With the economy showing durability and inflation gradually easing, the Fed remains cautious about making aggressive changes. Investors are keen to examine the minutes of the Fed’s December meeting, which will provide further clarity on the decision-making process behind the quarter-point rate reduction. During the meeting, Cleveland Fed President Beth Hammack was the only dissenter, signaling some internal division on the rate cut approach.
Fed officials Mary Daly and Adriana Kugler emphasized over the weekend that the central bank’s fight against post-pandemic inflation is not over. They reiterated the importance of reaching the 2 percent inflation target, suggesting that the Fed will remain vigilant in its monetary policy stance. The officials’ remarks underscore the Fed’s ongoing focus on controlling inflation, even as economic conditions show signs of improvement.
The unemployment rate is expected to remain steady at 4.2 percent, with average hourly earnings growth predicted to cool slightly compared to the previous month. This is seen as an indication that the labour market is no longer a significant driver of inflation, suggesting that wage pressures are beginning to ease in line with broader economic trends.
The December jobs data is unlikely to significantly alter the outlook of Federal Reserve officials, who are expected to continue slowing the pace of interest rate cuts. With the economy showing durability and inflation gradually easing, the Fed remains cautious about making aggressive changes. Investors are keen to examine the minutes of the Fed’s December meeting, which will provide further clarity on the decision-making process behind the quarter-point rate reduction. During the meeting, Cleveland Fed President Beth Hammack was the only dissenter, signaling some internal division on the rate cut approach.
Fed officials Mary Daly and Adriana Kugler emphasized over the weekend that the central bank’s fight against post-pandemic inflation is not over. They reiterated the importance of reaching the 2 percent inflation target, suggesting that the Fed will remain vigilant in its monetary policy stance. The officials’ remarks underscore the Fed’s ongoing focus on controlling inflation, even as economic conditions show signs of improvement.
The unemployment rate is expected to remain steady at 4.2 percent, with average hourly earnings growth predicted to cool slightly compared to the previous month. This is seen as an indication that the labour market is no longer a significant driver of inflation, suggesting that wage pressures are beginning to ease in line with broader economic trends.
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