The US economy created 243,000 jobs in December, the highest total for nine months, official figures show.
The rise was much more than expected. Analysts had forecast an increase of about 150,000 jobs.
The unemployment rate dropped to 8.3%, which was the lowest rate in nearly three years, and down from a revised rate of 8.5% in December.
Job growth was widespread, with large gains in business services, leisure and hospitality, and manufacturing.
Leisure and hospitality, which includes restaurants and hotels, added 44,000 jobs.
Retailers added nearly 11,000 jobs, and professional and business services, which includes higher paying jobs in accounting, architecture and engineering, gained 70,000, the most in 10 months.
Upbeat data
Lindsey Piegza, economist at FTN Financial, said: “It was a better-than-expected report, the strongest report that we’ve seen in quite some time.
“The big question is whether the reason we’re seeing the unemployment rate drop is because more and more people are dropping out of the labour force.
“I know the market wants to rally on this number but remember we need a minimum of 250,000 just to cover demographic change.”
The figures add to a range of data pointing to a gradual US economic recovery.
Last week, it was announced that the US economy expanded at a 2.8% annual pace in the October-December quarter, a full percentage point higher than in the previous quarter.
Earlier this week, a survey from the Institute for Supply Management (ISM) indicated that the US manufacturing sector expanded at its fastest pace in seven months in January.
