The recently released December US employment data sends a clear signal — growth is indeed slowing down.

The latest data from the Bureau of Labor Statistics shows that non-farm payrolls increased by only 50,000 in December, well below the market expectation of 60,000. November's data was also revised downward to 56,000 from the initially reported 64,000. These consecutive adjustments indicate that the softness in the hiring market exceeds many people's expectations.

Why are companies so cautious? There are two key reasons. First, there is significant uncertainty surrounding import tariff policies, causing companies to hesitate on expansion plans. Second, investments related to artificial intelligence are burning through cash at a large scale, with many firms preferring to allocate funds toward technological upgrades rather than blindly hiring more employees. This is a strategic adjustment reflecting a shift in business thinking.

Interestingly, the unemployment rate has slightly decreased to 4.4%. But behind this number lies a deeper logic — the labor force participation rate has also declined simultaneously, indicating an overall contraction in the labor force. A decrease in the unemployment rate does not necessarily mean an improvement in employment.

What impact do these data have on the Federal Reserve's decision? The market generally believes that the Fed is very likely to pause interest rate adjustments this month and continue to observe.

The market's reaction reflects this expectation: stock index futures continued to rise after the data was released, Treasury yields initially increased then fell back, with the 10-year US Treasury yield around 4.18%, essentially unchanged. The US dollar index's gain also narrowed to a slight increase of 0.1%. This steady response precisely indicates that the market has already digested the implications behind this employment data.