Unemployment falls to 9.4% last month. This is the lowest level in 19 months.
Economists credit people finding jobs, but also people giving up on their job searches for the new numbers.
The Labor Department says employers added 103,000 jobs in December, an improvement from November's revised total of 71,000 but far below most analysts' expectations.
Once unemployed workers stop looking for work, the government no longer counts them as unemployed.
Through all of 2010, the nation added 1.1 million jobs, or an average of 94,000 jobs a month.