The US economy added 146,000 jobs in November and the unemployment rate fell to 7.7%, the lowest since December 2008.
The drop, however, was largely due to the fact that more Americans stopped looking for work and weren't counted as unemployed.
The Labor Department report offered a mixed picture of the economy.
Hiring remained steady during Superstorm Sandy and in the face of looming tax increases.
But the government said employers added 49,000 fewer jobs in October and September than it initially estimated.
And the unemployment rate fell to a four-year low in November from 7.9 percent in October, reflecting a continued exodus of workers from the labor force.
Sandy's effect on the figures was much smaller many analysts had predicted.
However, there were signs that the storm disrupted economic activity.
Construction employment dropped 20,000. And weather prevented 369,000 people from getting to work - the most for any month in nearly two years. These workers were still counted as employed.
Since July, the economy has added an average of 158,000 jobs a month. That's a modest pickup from 146,000 average in the first six months of the year.
The job growth suggests that most employers aren't yet delaying hiring because of the "fiscal cliff." That's the combination of sharp tax increases and spending cuts set to take effect next year unless the White House and Congress reach a budget deal before then.
The US grew at a solid 2.7% annual rate in the July-September quarter.
But many economists say growth is slowing to a 1.5% rate in the October-December quarter, largely because of the storm and threat of the fiscal cliff.
That's not enough growth to lower the unemployment rate.
