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The US economy created 143,000 jobs in January, falling short of forecasts, but the preceding month’s bumper figure was revised upwards.
January’s figure from the Bureau of Labor Statistics undershot expectations of economists polled by Reuters of a 170,000 rise.
It contrasted with the 307,000 jobs the US added in December, a revision from the previous estimate of 256,000.
The unemployment rate edged down to 4 per cent, from 4.1 per cent.
Friday’s jobs data comes just over a week after the US Federal Reserve kept rates on hold at 4.25 to 4.5 per cent, despite pressure from US President Donald Trump to lower borrowing costs.
Rate-setters are expected to cut rates just twice this year, with the US labour market’s enduring strength affording them the time to take a cautious approach to lowering borrowing costs.
US government bonds came under pressure following the report as traders bet that the figures would not bolster the case for faster rate cuts.
The two-year Treasury yield, which tracks interest rate expectations and moves inversely to price, rose 0.06 percentage points to 4.26 per cent, while the 10-year yield added 0.04 percentage points to 4.48 per cent.
Stock futures extended small declines, with contracts tracking the S&P 500 down 0.2 per cent.
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