"December Jobs Report: Market Anticipates Final 2023 Figures Amidst Hiring Shifts and Inflation Trends"

The December jobs report is anticipated to reflect a hiring slowdown and a decrease in wage gains, indicating a cooling labor market. Nonfarm payrolls are expected to have increased by 175,000, with the unemployment rate slightly rising to 3.8%. Average hourly earnings are also predicted to show a modest increase month-on-month and a smaller year-on-year gain compared to previous figures. This data is crucial for assessing the possibility of the Federal Reserve achieving a soft landing for the economy, avoiding a recession while bringing inflation down to the target level. The labor market is showing signs of returning to pre-pandemic conditions, with wage growth slowing down, reducing the risk of a wage-price spiral.