Job creation slowed down in December as U.S. employers were more cautious in taking on new workers as 2005 drew to a close.

The U.S. Labor Department said that nonfarm payrolls climbed by 108,000 jobs last month.

Economists had called for 215,000 jobs to be added.

However, the government revised the November reading to show growth of 305,000 jobs during the month, instead of the earlier reported 215,000-jobs increase.

The unemployment rate fell to 4.9% from 5% in November.

For all of 2005, the U.S. economy added around 2 million jobs, about the same as 2004.

The unemployment rate averaged 5.1% in 2005, an improvement from the 5.5% average registered in 2004.