U.S. employers added 157,000 workers to their payrolls in December, bringing the year-end total of new jobs to 2.2 million, the best showing in five years.
The Labor Department said the December unemployment rate held steady at 5.4%.
Economists had expected the economy to generate 175,000 new jobs last month, but earlier estimates for previous months were revised higher.
Job growth for November and October were revised upward to show that employers added 137,000 jobs in November and 312,000 in October. Previous reports from the Labor Department showed a 112,000 increase in November and a 303,000 increase in October.
Manufacturing jobs advanced by 3,000 in December. The service-providing industry added 144,000 jobs. That included a 20,000 decrease in retail jobs.