The US economy created just 112,000 new jobs in January, government data showed today in a disappointing report.
The fifth straight monthly gain in payrolls outside farming followed a revised increase of 16,000 new jobs in December, the Labor Department said.
The unemployment rate ticked down to 5.6 per cent, the lowest since January 2002, from 5.7 per cent the previous month - but those numbers are taken from a separate, smaller, survey.
Analysts had been expecting the improving economy to create 150,000 new jobs in January. They were looking for the unemployment rate to hold steady at 5.7 percent.
The dollar and stock futures fell after the report and Treasury bond prices rose.
A revival in the jobs market is seen as crucial for a sustained economic recovery. The Federal Reserve is expected to keep interest rates on hold until signs of this emerge.
The weak labor market is expected to be a major issue between candidates in the presidential race. Mr Bush's opponents say his economic policies have helped the wealthy and done little to create new jobs.