The latest employment figures show the economy added 203,000 jobs in November, while the unemployment rate dropped 30 basis points to 7 percent, the lowest level in five years.
Economists expected the jobs numbers to increase by 180,000 and unemployment to dip by 10 basis points.
With a downtick in the unemployment rate, the labor force participation rate, a measure of both people who are working and those who are actively looking increased by 20 basis points to 63 percent, it's highest level in more than a year. The 30-year average stands at around 65.8 percent.
At the same time, the employment-population ratio, which measures the percentage of adults over 16 who have a job also increased by 30 basis points to 58.63, the biggest such increase since September 2012.
The Federal Reserve pledged to keep interest rates low until the unemployment rate drops to 6.5 percent or lower, as long as inflation remains near the 2 percent target.
The current downward trajectory of the unemployment rate may now provide a catalyst for the Fed to put the brakes on its historic expansion of monetary policy by tapering its massive bond-buying program initiated more than five years ago.
Below is a look at where the most jobs are being added. Education and health services had the largest increase, adding 40,000 jobs last month.
|Natural resources and mining||0|
|Information and media||-1,000|
|Financial service and real estate||-3,000|
|Professional and business services||35,000|
|Education and health services||40,000|
—By CNBC's Pradip Sigdyal and Giovanny Moreano. Follow Moreano on Twitter: