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The jobless rate for December remained at a steady 10%, but 85,000 more jobs were cut during the month. The number of job cuts was higher than expected and a retreat from November's data when 4,000 jobs were created according to the labor department.

The U-6 unemployment rate, which is comprised of people are unemployed, who have settled for part-time work, or have recently given up their job search but are available to work, increased from 17.2% to 17.3% in December. The U-6 rate is considered to be a more accurate gauge to the job market's overall health.

The construction industry took the brunt of the job losses, cutting 53,000 jobs in December. Industry experts say the job cuts were due to the cold weather.

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