The latest jobs report reveals weak job growth for December. Private employers added only 41,000 new positions. This figure fell short of economist expectations significantly. Analysts had anticipated a gain of 47,000 jobs. November’s data was also revised slightly upward. The prior month now shows a loss of 29,000 jobs. ADP Chief Economist Nela Richardson provided context.
Small businesses actually drove the limited hiring. They recovered from November’s job losses positively. Large employers notably pulled back their hiring. Education and health services led all sectors. That category added 39,000 positions last month. Leisure and hospitality followed with 24,000 new jobs. Trade, transportation, and utilities also saw gains.
However, several key sectors experienced notable losses. Professional and business services declined sharply. That sector lost 29,000 jobs during December. Information and manufacturing also shed positions. This weak job growth reflects broader economic cooling. Wage growth remained mostly unchanged from November. Job stayers saw a 4.4 percent annual pay increase.
Pay gains for job changers increased slightly. The ADP report often previews government data. The official Labor Department report comes Friday. Economists expect different figures from that report. They forecast 60,000 total nonfarm payroll jobs. The unemployment rate may ease to 4.5 percent. The labor market appears to be losing momentum.
This persistent weak job growth could influence policy decisions. The Federal Reserve monitors these numbers closely. Slower hiring often correlates with economic softening. Consumer spending may face future pressure. The data suggests a cautious business environment. Companies seem hesitant about aggressive expansion. The full economic picture will become clearer soon.
