The Labor Department will release the latest figures on hiring and unemployment in July on Friday at 8:30 a.m. Eastern time.

Wall Street analysts are looking for a gain of 180,000 jobs, down slightly from June’s showing but still a healthy number given the overall job market.

Unemployment is expected to edge down 0.1 of a percentage point to 4.3 percent, where it was in May, the lowest level of the recovery.

Average hourly earnings are expected to rise by 0.3 percent from June, bringing the rate for pay gains in the last 12 months to 2.4 percent.

Here’s what to watch for.

Job Market Momentum

With an unexpectedly strong gain of 222,000 jobs reported a month ago, the economy’s strength caught many economists by surprise, especially with only modest increases in gross domestic product and other economic gauges recently.

While July’s figures are expected to show a gain of 180,000 jobs, a number above 200,000 is certainly possible, especially given a robust service sector and signs of life in the manufacturing sector. What is more, July has a history of being seasonally strong, with hiring above the 200,000 threshold in July for the last three years.

Even if the payroll increase is close to consensus, that would still be considered a healthy number given an unemployment rate below 5 percent and a recovery that just entered its ninth year. It is also a sign that the prospect of wage increases is not discouraging employers from taking on more workers.

Waiting on Wages

It is a familiar ritual now for market watchers and economists: a healthy gain in average hourly earnings one month, followed by a lukewarm number the next. For example, earnings rose by 0.3 percent in February, and then by just 0.1 percent in March. A similar pattern followed in April and May.

This time, economists are looking for better follow-through. After a 0.2 percent increase in June, the forecast calls for a 0.3 percent gain in July. That would leave the 12-month rate of growth at 2.4 percent, which actually represents a deceleration from December, before President Trump took office. So if higher wages are heralded as good news, keep in mind that there is still some ground to recover.

Why wages are not rising faster given low unemployment is something of a mystery. One theory is that the number of labor-market dropouts after the recession was so great that more people are now seeking work than the figures would suggest. As those workers return, they provide a bit of a labor surplus, so employers do not have to raise wages as fast to retain or attract employees.

The Fed Factor

The Federal Reserve has signaled that it plans to keep its promise to tighten monetary policy gradually. Most analysts expect the central bank to wait until December to raise rates again, although the Fed will probably start reducing its bond holdings in September, another form of retreat from its stimulus program.

As policy makers plot their course, one major factor is inflation, which is linked to wage gains. So a strong job number, and especially a bigger-than-expected increase in average hourly earnings for July, would force investors to be more alert to the Fed’s prospective moves than they have been lately.

As a result, most traders on Wall Street would prefer to see a healthy increase in hiring that is close to the consensus, rather than another barnburner like June.

Where the Growth Is

So far this year, the big employment gains have occurred in sectors like health and leisure, which tend to pay less, and business services, which pay more. Gains in the middle tier of jobs, like construction, manufacturing and mining, have been more anemic lately.

The housing market has been strong in many parts of the country, which could help the construction sector. Similarly, a lower dollar has benefited exporters, which could increase hiring at factories.

Analysts will also be comparing gains or losses in the retail sector against areas like wholesale trade and transportation. Retail employers have been shedding jobs amid the growth of e-commerce, and experts are looking for any sign that warehouses and other logistics centers are picking up the slack.