WASHINGTON (AP) – For months, U.S. employers have steadily added jobs even as global growth has flagged and financial markets have sunk. Friday’s jobs report for December may provide some hints of whether that trend can endure.
Most economists are optimistic about last month: They have forecast that employers added a healthy 200,000 jobs and that the unemployment rate remained at a low 5 percent for a third straight month, according to data firm FactSet.
What’s behind the positive outlook? Most analysts expect solid U.S. consumer spending to offset weakness overseas. Stronger customer demand has given most businesses confidence to hire even though some sectors – notably manufacturing and oil and gas drilling – are struggling.
If employers continue to hire steadily and to raise wages consistently, consumers are expected to keep spending and to support U.S. economic growth even if foreign economies struggle.
Still, stumbling growth in countries like China, the world’s second-largest economy, and financial market turmoil could pose long-term challenges for the U.S. economy. A strong dollar and faltering global growth have cut into exports of factory goods.