Fresh data showing US hiring slowed again in December has sharpened fears that the world’s largest economy may be sliding toward a recession.
Private employers added just 41,000 jobs last month, according to a report from ADP, rebounding from November’s revised loss of 29,000 positions.
But that still fell short of expectations. Economists polled by Reuters had forecast a stronger gain of 47,000 jobs.
The weaker-than-expected increase is the latest sign that the labor market — long a pillar of US economic strength — is losing momentum.
Hiring has slowed sharply as companies grapple with higher borrowing costs, policy uncertainty and cooling demand, raising concerns that a broader economic downturn could be taking shape.
The ADP report, produced in partnership with the Stanford Digital Economy Lab, was released ahead of Friday’s closely watched government employment report from the Bureau of Labor Statistics.
While ADP’s monthly estimates often differ from official payroll figures, the trend points to a clear slowdown.
Economists say that although layoffs remain relatively low by historical standards, businesses are increasingly reluctant to expand headcounts.
Traders work on the floor of the New York Stock Exchange as fresh data showed U.S job growth slowed in December, fueling fears the economy may be losing momentum
S&P 500 futures ticked higher in early trading despite concerns that a cooling labor market could signal growing recession risks
Uncertainty over government policy on tariffs has weighed on hiring decisions, while some employers are using artificial intelligence to automate roles and limit new recruitment.
Looking ahead to Friday’s official report, a separate Reuters survey of economists expects private payrolls rose by 64,000 in December, slightly below November’s 69,000 gain.
Overall payroll growth is forecast at about 60,000 jobs, with anticipated government job losses dragging on the total.
Wall Street will focus on the unemployment rate, which is expected to fall to 4.5 percent after climbing to a more than four-year high of 4.6 percent in November.
Last month’s figure was distorted by a 43-day federal government shutdown, which also prevented the release of October’s unemployment data — the first time the series has been interrupted since records began in 1948.
Markets were little changed following the data, with investors weighing signs of a cooling economy against hopes for future interest rate cuts.
Futures linked to the Dow Jones rose 72 points, or 0.1 percent, while S&P 500 futures edged higher too.
Oil prices fell after President Donald Trump said interim authorities in Venezuela would deliver as much as 50 million barrels of crude to the United States, stoking concerns about increased supply.
