US nonfarm payrolls rise less than expected in January

US nonfarm payrolls rose less than expected in January, according to data from the Labor Department.

The figures showed US employers added 151,000 jobs, compared with consensus expectations for a 190,000 gain and a downwardly-revised 262,000 the previous month.

Meanwhile, the unemployment rate fell to 4.9% from 5% in December, nearing an eight-year low. Economists had expected the rate to remain unchanged at 5%.

“However confident Janet Yellen and her Fed colleagues were when raising interest rates in December, the US data released in January must be giving them food for thought – and today’s poor non-farm payroll figures are no different,” said Dennis de Jong, managing director at UFX.com.

"Adding less than 200 thousand jobs for the first time since October, coupled with lower than expected GDP and productivity figures, has taken some of the shine off of the previously buoyant US economy.

"Yellen won’t be worrying too much just yet, as other major economies have pared down growth forecasts amid global volatility. Many observers will surely be adopting a wait and see approach."