Jobs report disappoints as Wall Street looks for signs of recession

An ADP report showed private employers added 41,000 jobs in December, below economists' expectations, and markets were largely unchanged as investors awaited Friday's official U.S. government jobs report.

Fresh ADP data released ahead of the government's monthly employment report shows U.S. private hiring slowed in December. The ADP report, compiled with the Stanford Digital Economy Lab, recorded 41,000 private-sector jobs added, a rebound from November's revised loss but below forecasts. Economists and market participants are watching the figures for signs of broader economic weakening. The ADP estimates often differ from the Bureau of Labor Statistics' official payroll figures, so attention is focused on the upcoming government release. Key points: - ADP reported 41,000 private-sector jobs added in December, below a Reuters-polled forecast of 47,000. - The report follows a revised November loss and is seen as part of a trend of slowing hiring. - Factors cited for slower hiring include higher borrowing costs, policy uncertainty and cooling demand, along with some employers using automation and artificial intelligence. - Markets were largely unchanged after the data as investors awaited Friday's Bureau of Labor Statistics report, for which a Reuters survey expects private payrolls up about 64,000 and the overall unemployment rate around 4.5%. Summary: The ADP release underscored that hiring momentum has weakened and has heightened attention to whether the U.S. economy is losing strength. The next key data point is the official BLS employment report due Friday, which market participants and economists will use to assess the labour market and economic outlook.