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A string of better-than-expected U.S. data in recent weeks has highlighted a contrast between the recovery in the world's biggest economy and Europe, where the economy is widely believed to be contracting.

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The jobs data was overshadowed in financial markets by concerns over Europe's debt crisis. U.S. stocks ended mostly down, while Treasury debt prices rose on safe-haven bids.

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The economy added 1.6 million jobs last year, the most since 2006, and the jobless rate, which peaked at 10 percent in October 2009, has dropped 0.6 percentage point in the last four months.

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"We're moving in the right direction. When Congress returns they should extend the middle-class tax cut for all of this year, to make sure we keep this recovery going," he said.

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Employment remains about 6.1 million below its pre-recession level and at December's pace of job growth, it would take about 2-1/2 years to win those jobs back. There are roughly 4.3 unemployed people for every job opening.

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Unseasonably mild weather last month helped fuel a hefty gain in construction employment. Courier jobs also rose sharply, a move the Labor Department pinned on strong online shopping for the holiday season.

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A broad measure of unemployment, which includes people who want to work but have stopped looking and those working only part time but who want more work, dropped to an almost three-year low of 15.2 percent from 15.6 percent in November.

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New York Federal Reserve Bank President William Dudley on Friday suggested the U.S. central bank was still leaning toward buying more bonds to pull borrowing costs lower, describing the recovery as "frustratingly slow" and the unemployment rate as "unacceptably high."

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Government employment contracted 12,000, with most of the drag coming from local government layoffs. However, the pace of government job losses is moderating as some states report revenue growth after years of being in the red.

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For all of 2011, the private sector added 1.9 million jobs, while government employment fell 280,000. A measure of the share of industries that showed job gains during the month rebounded to a five-month high in December after diving in November.

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Transportation and warehousing employment jumped 50,200. The bulk of the rise came from the messenger industry, which added 42,000 jobs, reflecting an increase in deliveries of online purchases made during the holiday season.

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Manufacturing jobs rose 23,000, the largest increase since July. Factory employment rose 225,000 last year, sustaining gains for the first time since 1997.

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At stake is not only Corzine's reputation - and whether his career on Wall Street and in politics comes to an ignominious ending - but investors' trust in Duffy, the CME and the U.S. futures industry, which is largely self-regulated.
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Corzine and Duffy barely know each other, but their businesses were enmeshed in the clubby futures trading world. The CME made money from MF Global's trading, and was supposed to watch for violations of rules designed to protect investors.
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When MF Global collapsed and clients grew angry both at Corzine's firm and at Duffy's exchange, Duffy launched a public attack on Corzine at the congressional hearings.
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The plain-spoken CME boss alleged that Corzine may have known of improper use of client money.
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"In our opinion, someone has violated the law," Duffy told Congress last week, without specifying who that someone might be. He added that MF Global "falsified" its balance sheets to mislead CME auditors.
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Duffy's statements, backed up by a 10-page, hour-by-hour chronology of MF Global's final days, provide the most detailed public accounting of the frantic dissolution of one of the country's largest futures brokerages.
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The closest thing to a smoking gun presented by Duffy was his disclosure of a conference call in the wee hours of October 31, when MF Global was desperately trying to find a buyer to stave off bankruptcy. In those chaotic hours, the brokerage firm appears to have secretly dipped into customer accounts that were supposed to be kept safe by the brokerage, Duffy said.
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In that call, a senior MF Global employee told CME auditor Mike Procajlo that "Corzine knew about loans that had been made from the segregated customer accounts," according to the exchange's chronology. Procajlo has declined to comment.
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Corzine has repeatedly denied any knowledge of the alleged misappropriation of customer funds, which, if true, could constitute a breach of federal law. He told Congress he had no idea what Duffy was talking about. "I did not instruct anyone to lend customer funds."
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Whether they are confirmed or dismissed in ongoing federal inquiries, Duffy's allegations may have further damaged Corzine's public image. Some lawmakers at the hearings used the ammunition supplied by Duffy to paint Corzine as an out-of-touch Wall Street type who had hurt farmers and other small investors - but who now claimed no recollection of what had happened.
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Noting that MF Global was one of the largest traders on the exchange, Hastert says "the whole business works on trust, and when somebody breaks that trust, it jeopardizes the system." Duffy "was not amused by the situation at all," Hastert added.
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Now that Duffy has turned over his evidence to the Justice Department and the Commodity Futures Trading Commission, it appears that CME won't be doing any more investigating on its own. The CFTC has instructed the exchange to refrain from further inquiries, for reasons that remain unclear.
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Corzine grew up on a small family farm, his father a farmer and an insurance salesman. In a personal moment in the hearings, when asked to reflect on farmers who lost money in the collapse, Corzine hung his head and said, "my father was one of those folks who'd go to a grain elevator to hedge out future crops."

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