"Those are the things that will lead to employment growth here," Rapp said in an interview with Betty Liu on Bloomberg Television's "In the Loop."

Jobless Rate

The unemployment rate, derived from a separate survey of households, was forecast to hold at 8.5 percent, according to the survey median. The drop in the jobless rate reflected a 381,000 decrease in unemployment at the same time 250,000 Americans entered the labor force.

Private payrolls, which exclude government agencies, rose 257,000 in January after a revised gain of 220,000 the prior month, marking the biggest back-to-back gain since March-April. It was projected to climb by 160,000.

Employment at service-providers increased 162,000, the most in four months and reflecting faster job gains in retail, transportation and leisure and hospitality.

Tibco Software Inc. plans to hire 500 people in the U.S. this year as the economy improves and Europe works out its debt crisis, Vivek Ranadive, chief executive officer of the Palo Alto, California-based company said in an interview.

"We are hiring quite rapidly now, all in sales and service," Ranadive said last week at the World Economic Forum's annual conference in Davos, Switzerland. "It's a good time to hire."

Construction companies added 21,000 workers last month. Government payrolls decreased by 14,000 in January, reflecting cuts at the federal and local levels.

Average hourly earnings rose 0.2 percent to $23.29, today's report showed. The average work week for all workers held at 34.5 hours.

The so-called underemployment rate -- which includes part- time workers who'd prefer a full-time position and people who want work but have given up looking -- decreased to 15.1 percent from 15.2 percent.