The U.S. economy added 256,000 jobs in December, surpassing expectations, while the unemployment rate dropped to 4.1%.

Private sector payrolls rose by 223,000, with significant job gains in healthcare (46,100), retail (43,400), and leisure and hospitality (43,000).

However, manufacturing saw a surprising loss of 13,000 jobs. Wage growth was steady, with average earnings increasing 0.3% monthly and 3.9% annually.

The labor force participation rate remained at 62.5%, Fox Business has reported.

This strong jobs report signals to the Federal Reserve that caution in easing rates may continue, with markets expecting the Fed to hold rates steady at its upcoming January meeting.

Written by B.C. Begley