Private employers added 122,000 new jobs in December, marking a slowdown from November's 146,000 and falling short of expectations. With hiring contracting in key industries like manufacturing, the labor market appears to be losing steam heading into 2025.

In a report published Wednesday,Automatic Data Processing Inc.highlighted the results of its National Employment Report, which comes ahead of Friday's crucial non-farm payroll data from the government.

"Hiring slowed in several industries. Employment in manufacturing shrank for the third straight month," according to the December ADP National Employment Report.

Nela Richardson, ADP's chief economist, said: "The labor market downshifted...