Early indicators suggest the U.S. labor market will maintain a measured pace rather than deliver a dramatic reset for the new year. Forecasts point to slower gains compared to previous years.

The December jobs report will be released Friday, providing the latest snapshot of employment trends. Robert Half points to modest job gains in Q1 2026, about 57,000 net-new jobs per month (Read more: Robert Half). This reflects a continuation of the selective hiring environment seen in 2025, as companies prioritize efficiency amid economic uncertainty.

The Federal Reserve will be monitoring closely, with another rate cut decision pending at month’s end.