US non-farm payrolls undershoot expectations in December

US employers added less than expected jobs in December while the unemployment rate rose in line with forecasts, the Labor Department revealed on Friday.

Non-farm payrolls rose 156,000 last month, well below analysts' estimates of 178,000, supported by growth in employment in health care, social assistance and food and drink services. November was revised up to 204,000 jobs from a previous 178,000.

December's figure brings total job growth to 2.2 million in 2016, compared to 2.7 million in 2015.

The jobless rate edged up to 4.7% in December from 4.6% in November and the number of unemployed persons was little changed at 7.5 million.

However, November's decline in the unemployment rate to 4.6% from 4.9% the prior month was mainly due to a fall in the labour force.

Average hourly earnings rose an annualised 2.9% in December, ahead of a projected 2.8% increase and following a 2.5% gain a month earlier. On the month, earnings edged up 0.4% compared to forecasts of 0.3% growth and November's 0.1% decline.

The labour force participation rate held at 62.7% and was unchanged over the year.

“Despite the non-farm payroll reading coming in below expectations, employment in the US has been strong for some time now. It looks as though we are coming towards the end of an eight-year bull cycle fuelled by loose monetary policy,"said Dennis de Jong, managing director at UFX.com.

“The December interest rate rise came as no surprise and the latest minutes from the Fed suggest that more interventions will be required in 2017 to keep growth steady."