The government reported that the economy added 148,000 jobs in December, missing Wall Street expectationsof 190,000, according to Reuters. The unemployment rate held steady at 4.1 percent.
The closely-monitored jobs report comes as Wall Street grows more optimistic on economic outlook as GDP numbers improve and the Federal Reserve look to hike interest rates.
"I would say all in all, when you take a look at the two-month number, it's still a good jobs report," said Michael Materasso, senior vice president of Franklin Templeton's fixed income policy committee. "Keep in mind that December is a tough month in terms of getting the number right in terms of seasonality."
Materasso also said that since labor markets are so tight, it may be harder to see robust employment growth each month.
In other economic news, non-manufacturing activity slid further in December, with the ISM index coming in it 55.9. That number missed expectations of 57.6 as predicted by a poll of Reuters economists.
Fed President Patrick Harker argued that the central bank ought to approve just two rate hikes in 2018 at the 2018 ASSA Annual Meeting in Philadelphia. Despite the fact that the central bank is currently expecting to raise its interest rate target three times in the new year, Harker said that weak inflation readings should keep the Fed at bay.
Harker voted to hike the Fed's benchmark rate a quarter point at the Fed's December meeting.
The speech came just days after the U.S. central bank released the minutes from its December meeting, whereby the Fed raised interest rates, but remained concerned over the state of inflation.