The US labor market is forecast to remain strong in January, although job growth is expected to continue to be slower than before.
The US Non-farm Payroll (NFP) data published every Friday of the first week at the beginning of the month is closely watched by investors to assess the health of the economy.
The giant economy is expected to add 193,000 jobs in January, down from 223,000 jobs recorded previously.
Meanwhile, the unemployment rate is predicted to increase to 3.6% from 3.5% in December.
Nevertheless, investors will focus more on wage inflation which is projected to be slower, thus giving comfort to the Federal Reserve (Fed) in fighting inflation.
Average hourly earnings are forecast to rise 0.3% after the same increase in December, which would have lowered year-over-year wage growth to 4.3% from 4.6% in December.
Growth in wage inflation will also influence the central bank's decision on how far the Fed will continue to tighten its monetary policy.
The Fed raised interest rates by 25 basis points to a range of 4.50%-4.75% on Thursday (Malaysian time), and indicated a continued increase in borrowing costs albeit at a slower pace.
