Markets reacted positively to the announcement, with the stock marketsurging at the open and safe-haven bond prices plunging. Economists had been expecting 100,000 new jobs.

As the country struggles to gain growth traction, the unemployment rateheld above 8 percent for the 41st consecutive month, according to the latest report from the Bureau of Labor Statistics.

"I'd call this a soft 163," said Steve Blitz, chief economist at investment research firm ITG in New York. "If you want to take from this the notion that the economy is not heading to a recession or something more ominous, that's fine. But if you want to take from this the idea that the economy is about to accelerate, I think that would be a big mistake."

Despite the seemingly good news, the report's household survey showed that the actual amount of Americans working dropped by 195,000, with the net job gain resulting primarily from seasonal adjustments in the establishment survey. The birth-death model, which approximates net job growth from newly added or closed businesses, added 52,000 to the total.

The household survey also showed 150,000 fewer Americans in the workforce.

In all, the government said private payrolls added 172,000 positions — about in line with Wednesday's report from ADP and Macroeconomic Advisors — while government subtracted 9,000.

"While the monthly gain is still relatively small by historical standards, it might help spark somewhat higher consumer optimism and spending," Kathy Bostjancic, director of macroeconomic analysis at The Conference Board, said in response to the report.

At this point, all economic reports and particularly the jobless number are viewed through the prism of how they might affect Federal Reserveaction.

The Fed this week offered little direction other than to affirm that it stood at the ready to provide more quantitative easing stimulus if needed. But Chairman Ben Bernanke may add more to the conversation during the annual summit in Jackson Hole, Wyo., later this month, and the central bank's policy committee meets again in September.