The bureau also said in the report that the leisure and hospitality, health care, construction, and social assistance sectors witnessed "notable" job gains in December.
The jobless rate has remained in a range of between 3.5% and 3.7% since March, the bureau's report noted.
The Federal Reserve will likely closely examine the December jobs report as it prepares for the next monetary policy meeting Feb. 1.
As of Friday morning, according to CME Group's FedWatch tool, market participants' pricing of Fed fund futures indicates there is a 62.7% probability that the Fed will increase rates by 25 basis points at the next meeting, and a 37.3% probability it will increase rates by 50 basis points.
The Fed's key short-term interest rate is now in a range of 4.25% to 4.5%, after the central bank raised rates by 50 basis points at its December meeting.
Douglas Tommasone, a senior fixed-income portfolio manager at Fiduciary Trust International, said in an email that Friday's jobs data was a "Goldilocks labor report" as job growth continued in line with forecasts after incorporating revisions, with private payrolls particularly strong.
"More aggregate workers meaning less average hours worked, a decent sign of no overheating," Mr. Tommasone said. "The economy adding jobs while wage growth slows and real incomes stay positive is a formula for a happy Fed that will see a wider path to a soft landing."
Fiduciary Trust had more than $82 billion in assets under management and administration as of Sept. 30.
John Luke Tyner, portfolio manager at Aptus Capital Advisors, said in an email that the Fed has been clear in its communications that they are more comfortable going at a 25-basis-point hike pace given the "front-end heavy-lifting" they did in 2022.
Mr. Tyner added that barring a "huge upside surprise" in consumer price index data next week, the Fed will likely continue raising rates by 25 basis points for a while.
Aptus has $3.9 billion in AUM.
Rhys Williams, chief strategist and portfolio manager at Spouting Rock Asset Management, said in an email that while the jobs report was "better than expected demonstrating economic resilience," the markets have taken their key from wage growth coming in less than expected.
"This would be more of the Goldilocks economy scenario with good growth but less wage inflation," Mr. Williams said. "The market reaction (Friday) may be enhanced by yesterday's hard selloff in anticipation of a hot number. Additionally, the wage growth is still about 4.1% higher than December 2021. So, while the trend is moving in the right direction, we do not think the Fed will declare 'mission accomplished' anytime soon."
Overall, Mr. Williams added, "we think the Fed wants to see much higher unemployment before they stop (hiking rates)."
Spouting Rock has $2.3 billion in AUM.