(Reuters) - The addition of 200,000 new jobs in December shows that the economy is strengthening, Labor Secretary Hilda Solis said on Friday.

We have seen a steady firming up of our economy in recent months with two million jobs created in the private sector of the past year, she told CNBC television.

Now we are seeing a better trajectory, we are moving in the right direction.

In the last few months, on the whole I have seen good incremental increase in the private sector jobs, so on that side of the factor I would say, 'Hey, that is not a bad thing at all, she said.

But she urged the extension of the payroll tax cut and further measures to support continued improvement in the jobs market.