Friday's jobs report could present a mixed view of the labor market. Here's what to expect

The December jobs report is likely to provide only limited clarity on where the labor market is headed, with experts differing on how pronounced a slowdown there is in hiring.

From a consensus view, economists expect the Bureau of Labor Statistics on Friday morning to report a gain of 155,000 in nonfarm payrolls, a step down from the surprising 227,000 increase in November but about in keeping with the four-month average. The unemployment rate is forecast to hold steady at 4.2%.

However, the details of the report will be key, with some on Wall Street expecting that the number could come in a bit weaker, depending on how seasonal trends and other factors play out.

"We've seen a little bit of the softening, and I think we'll continue to see that, but it's still a good [labor] market overall," said Maureen Hoersten, chief operating officer and interim CEO at LaSalle Network, a Chicago-based staffing firm. "Things are leveling off a little bit. People are still a tad cautious, trying to figure out this new year and the new economic climate and political climate."

On average, the economy in 2024 added about 180,000 jobs a month through November, though the data has been volatile and somewhat confusing lately. Federal Reserve Governor Michelle Bowman said Thursday that labor market reports "have become increasingly difficult to interpret" due to measurement challenges, which have included a surge of new workers and low response rates on surveys.

The December report also could be harder to judge depending on how the hiring of holiday workers affects the numbers.

Goldman Sachs, for one, estimates that payroll growth will come in at just 125,000, with the unemployment rate drifting up to 4.3%.

"Our forecast reflects a rebound in the