President Barack Obama is vowing a fresh effort to help job growth.
US employment fell for a third consecutive month in August, but the drop was less than expected.
It relieves concerns about a stalling economic recovery and a double-dip recession.
The scarcity of jobs has hurt consumer spending, which normally accounts for about two-thirds of US economic activity.
President Obama welcomed the labor market report as “positive news”, but said more needed to be done to help the economy and he promised an outline of new measures next week.