The U.S. unemployment rate fell further to 8.5 percent in December, a decline of 0.1 percent from the month before and the lowest level in three years, as American employers stepped up hiring.
Last month, the economy added 200,000 jobs, the Labor Department said Friday, about double the number of jobs added in November.
Economists had projected that about 150,000 would be added, moving the unemployment rate slightly upward to 8.7 percent.
In 2011, the U.S. economy added 1.6 million jobs.
Despite the falling unemployment rate, at least 14 million Americans who want a job are unable to find one.