Non-farm payrolls jumped by 244,000 for the month of April, reported the Bureau of Labor Statistics (BLS).
Total US non-farm payroll now stands at 131.028 million.
The unemployment rate, however, edged up to 9.0 percent from 8.8 percent because more people went out to look for work.
These jobseekers increased the total labor force, according to the way BLS calculates that data, so they pushed up the unemployment rate even though payroll increased.
Economists had expected the BLS report to show payroll gains of only 185,000 for April.
This better-than-expected report cheered the market as risk assets like US stocks rallied across the board. Earlier in the week, the market was hurt by weak ADP and weekly initial jobless claims reports.
Commenting on the BLS data, Douglas Borthwick of Faros Trading said: “The [US] labor force rises by [about] 250K a month, and so a Non Farm Payroll number of around 250K keeps up with new entrants. It shows stabilization in the market, but not yet significant growth.”