Job creationin the private sector was slightly better at 130,000, but overall the report painted a picture of a jobs market that had gotten a boost from unseasonably warm winter weather but now has cooled.

The service sector again accounted for most of the job creation, growing 101,000 while manufacturing added just 16,000, according to the Bureau of Labor Statistics. Governments cut a net 15,000 jobs for the month. The average work week was unchanged at 34.5 hours.

Though the headline number indicated job creation, the total employment level for the month actually fell 169,000. The disparity likely emanates from a drop in the labor force participation rate — or the level of Americans actively looking for jobs or otherwise employed — from 63.8 percent to 63.6 percent, its lowest level since December 1981.

The amount of discouraged workers swelled from 865,000 to 968,000, an increase of 12 percent. Those working part-time for economic reasons surged 181,000 to more than 7.8 million.

"In the weakest recovery since the Great Depression, more than four-fifths of the reduction in unemployment has been accomplished by a dropping adult labor force participation rate — essentially persuading adults they don't need a job, or the job they could find is not worth having," said University of Maryland economist Peter Morici.

Wall Street economists had been expecting the Bureau of Labor Statistics report to show 170,000 new jobs created and the unemployment rate holding steady at 8.2 percent.

The unemployment rate, which estimates the total percentage of jobless Americans but does not count those not actively looking for work, was last this low in January 2009, when President Obama took office. Total job creation, though, remains narrowly negative for the president and likely will be a contentious issue as Obama seeks a second term.

The miss in the nonfarm payrolls report led to a negative reaction on Wall Street, with the stock markettrading sharply lower and interest rates on government debt falling. The 30-year bond gained more than 3 points in price to yield 3.09 percent. Traders frequently treat the jobs report as a sell-the-news event, with stocks falling 10 of the last 12 days when the report has come out.

An alternative measure of unemployment which counts those who have stopped looking for work held steady at 14.5 percent.

"We are stuck with labor demand that is just too darn weak," economist Jared Bernstein said on CNBC's "Squawk Box." "I'm not pleased with what I'm seeing." (See the full interview here.)

The BLS also indicated an upward revision to its March numbers, from 120,000 to 154,000.

Long-term unemployment remains a problem, though it eased somewhat in April. The total amount of those out of a job for more than 27 weeks dipped from 5.3 million to 5.1 million, while the average duration of unemployment fell from 39.4 weeks to 39.1 weeks.

"This remains a weak economy, and the job counts in March and April — which have come in at considerably below 200,000 per month — may perhaps continue right through the summer," said Kathy Bostjancic, director of macroeconomic analysis at The Conference Board.