* Nonfarm payrolls rise 103,000 in December
* Private employment gains 113,000
* Unemployment rate falls to 9.4 pct from 9.8 pct
* Average work week unchanged at 34.3 hrs
By Lucia Mutikani
WASHINGTON, Jan 7 (Reuters) – The U.S. economy created far fewer jobs that expected in December, suggesting the Federal Reserve will complete its asset buying program, but the unemployment rate dropped to its lowest in more than 1-1/2 years.
Non-farm payrolls increased 103,000, the Labor Department said on Friday, below economists’ expectations for 175,000. Private hiring rose 113,000, while government employment fell 10,000. However, overall employment for October and November was revised to show 70,000 more job gains than previously reported. The unemployment rate fell to 9.4 percent, the lowest since May 2009, from 9.8 percent in November. Economists raised their employment forecasts after payrolls processing company ADP Employer Services said on Wednesday private employers added 297,000 in December — the largest gain on ADP records dating to 2000.