Investing.com - US private payrolls growth slowed in December, but the labor market showed enough underlying strength to suggest that the Federal Reserve will take its time cutting interest rates this year.
Private payrolls rose by 122,000 jobs last month, after advancing by 146,000 in November, the ADP National Employment Report showed on Wednesday.
Economists had forecast private employment increasing by 139,000 positions.
A separate release on Tuesday indicated that job openings in the US surprisingly moved up in November and hiring softened, in a sign the broader labor market is cooling at a reasonably slow pace.
These reports were published ahead of Friday’s more comprehensive and closely watched employment report for October from the Labor Department’s Bureau of Labor Statistics.
Nonfarm payrolls are estimated to have increased by 154,000 jobs last month, a slowdown from the 227,000 gain seen in November.
The unemployment rate is forecast to stay at 4.2%.
Labor market data has been volatile in recent months amid disruptions from strikes and hurricanes.
With investors barely pricing in two rate cuts from the Federal Reserve this year the data is likely to remain consistent with a gradually slowing, but still solid labor market.