A modest 18,000 jobs were added by US employers in December and the unemployment rate rose to 5% in a sign of a cooling economy.
The figures - the latest in a series of weak indicators from the US this week - sent stock markets sharply lower.
The US Labor Department's non-farm payrolls report showed a sharp decrease from an upwardly revised gain of 115,000 in November.
The report, seen as one of the best indicators of economic momentum, also found that the overall unemployment rate rose from 4.7% in November.
The report showed the smallest number of jobs created since August 2003 and the highest unemployment rate since November 2005, in the wake of Hurricane Katrina. Analysts had expected on average a gain of 70,000 jobs and jobless rate of 4.8%.
