The US job market added 517,000 jobs in January, beating expectations and marking the largest increase since July, while the national unemployment rate dropped to 3.4% - its lowest point since 1969.
Wage growth continued to moderate, although it remains faster than the pace suggested by some Fed officials.
The strong job growth could put pressure on the Fed to keep hiking interest rates to curb inflation.
The US job market added 517,000 jobs in January, according to the Bureau of Labor Statistics.
The unemployment rate fell to 3.4%, the lowest level since 1969, but wage growth continued to moderate, climbing by 4.4% over the year.
The Federal Reserve has been looking for the labor market to cool, but the continued hiring and booming demand for labour has contributed to high inflation.
However, some economists believe hiring gains have defied the Fed's efforts to temper them by raising interest rates.
The unexpected surge in hiring has led to a great deal of excitement among economists, who had been expecting a gradual cooling of the labor market.
"So much for moderation!" exclaimed S&P's chief US economist, Beth Ann Bovino.
In contrast, the NY Post characterizes the result as a "blockbuster" that could put pressure on the Fed to continue interest rate hikes.
Despite signs of a slowing economy and recent tech sector layoffs, hiring in January was widespread, led by gains in leisure and hospitality, professional and business services, and health care.